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Silver Price Trades Higher Facing the $18.20 Resistance

XAGUSD Silver Price
XAGUSD Silver Prices

Silver price (XAGUSD) trades 0.15% higher at $18.02 as the rebound from two-week lows at 17.57 continues. The signing of the initial trade deal between the US and China improved risk appetite and investors shifted their attention to more risky assets.

On the data front the Housing Starts (month over month) came in at 1.608M topping the estimates of 1.375M in December. The U.S. Building Permits (month over month) came in at 1.416M, below the forecasts of 1.468M.

Silver is also supported by the expectation that the Fed will keep rates unchanged   at its policy meeting before the end of January.

Read our Best Trading Ideas for 2020.

Silver Price Analysis

The silver price tested the previous week the 100-day moving average and managed to rebound from the 2020 lows at $17.57. The technical outlook is positive for silver despite the correction from the recent highs after the killing of Iranian General Souleimani and the escalation between Iran and USA.

Looking north, the first resistance for silver price stands at $18.11 the daily high. If silver price breaks above that resistance, the next level to watch is at $18.20 the high January 9th. The next barrier will be met at $18.84 the high from January 8th.

On the downside, immediate support for XAGUSD will be met at $17.93 the daily low. Next support stands at $17.572 the 100-day moving average, which if pierced might cancel the positive momentum which started in early December. Sellers would take control below $17.57 and might test the 50-day moving average at $17.27.