Silver price traded sharply lower in today’s Asian session following US President Trump’s announcement of fiscal measures and WHO declaring the coronavirus a pandemic. XAGUSD fell from its intraday high of 16.90 to 16.43. As of this writing, the precious metal is trading at 16.54.
On the daily time frame, it can be seen that this area where XAGUSD is trading at, coincides with its previous lows. The precious metal has successfully found bids at this price on December 9 and March 2. Will support hold at 16.50 today?
Silver price chart, Daily
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If there are enough buyers in today’s trading, we could see silver price trade higher to its near-term resistance. XAGUSD could rise to 16.85. On the 1-hour time frame, it can be seen that this is where the falling trend line (from connecting the highs of March 9 and March 11) coincides with the 61.8% Fib level (when you draw the Fibonacci retracement tool from yesterday’s high to today’s swing low).
Meanwhile, a close below today’s Asian session low at 16.43 could mean that a bigger sell-off is ahead for silver price. The next major support level for XAGUSD would be at 15.50. This price previously served as resistance for the precious metal on March 21 and June 21 of last year and could turn into support.