XAG/USD oscillates near $21 as yields ease ahead of official labor market data – Crypto News – Crypto News
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XAG/USD maintains a large top, further downside ahead – Credit Suisse XAG/USD maintains a large top, further downside ahead – Credit Suisse

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XAG/USD oscillates near $21 as yields ease ahead of official labor market data – Crypto News

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  • Silver price juggles around $21.00 as the focus shifts to the US NFP report.
  • US weekly jobless claims were almost unchanged near 207K for the week ending September 29.
  • Silver price weakens after breaking down the H&S neckline at $22.11.

Silver Price (XAG/USD) remains directionless around $21.00 in the late European session. The asset struggles to find a direction as US Treasury yields ease to near 4.77% on expectations of cooling labor market conditions.

The white metal has remained inside the woods as investors shift focus to the US Nonfarm Payrolls (NFP), which will provide a snapshot of the current status of the labor market. Cues from the US ADP Employment Change data were weak as private payrolls rose by 89K in September, halved from August reading of 180K.

As per the estimates, the US laborforce witnessed fresh additions of 170K employees, lower than the former release of 187K. The Unemployment Rate is seen declining to 3.7% vs. the August reading of 3.8%. In addition to the job data, labor earnings data will be keenly watched. Monthly Average Hourly Earnings data is foreseen to expand at a higher pace of 0.3% against the 0.2% pace recorded in August.

Meanwhile, the US Department of Labor reported weekly Jobless Claims data for the week ending September 29. Individuals claiming jobless benefits for the first time increased marginally to 207K from the former reading of 205K but lower than expectations of 210K.

Silver technical analysis

Silver price delivers a breakdown of the Head and Shoulder chart pattern on a daily scale, which results in a vertical sell-off. The white metal breaks sharply below the neckline of the aforementioned chart pattern plotted from June 23 low at $22.11. Potential support is placed from March 08 low at $19.93.

The asset trades below the 20-day Exponential Moving Average (EMA), which indicates that the short-term trend is bearish.

The Relative Strength Index (RSI) (14) trades in the bearish range of 20.00-40.00, which warrants more downside.

Silver daily chart

 

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