XAGUSD Rebounds from Recent Lows Supported by Central Bank Measures

Silver price (XAGUSD) rose on Wednesday as the rebound from recent lows continues supported by monetary and fiscal measures from the central banks and governments around the globe. White House and Senate leaders yesterday agreed on a $2 trillion relief package to support the economy during the coronavirus spread.

The Federal Reserve also stepped in with more aggressive measures to combat the coronavirus outbreak impact on the businesses and economy. Federal Reserve will purchase $250 billion in MBS this week and $375 billion in Treasuries. Fed also announced that they would buy corporate bonds for the first time. 

The silver price is 0.01% higher at 14.25, making earlier fresh weekly highs as the rebound from the recent lows continues for the fifth consecutive trading session. 

On the upside, initial resistance for silver will be met at $14.68, the daily top. If the price breaks above, the next resistance is $15.09 the high from March 16th. The next resistance stands at $15.82 the high from March 13. 

On the other hand, the first support for silver will be met at $14.11 the daily low. The next support stands at $13.15 the low from yesterday’s session. More bids might emerge at $12.22 the low from March 23.  

Silver Daily Chart

Was this post helpful?