Silver Price Analysis: XAG/USD appears well set to test golden Fibonacci ration below $23.00

• Silver Price remains pressured at two-month low after four-day losing streak.
• Clear downside break of 200-day EMA, bearish MACD signals favor XAG/USD sellers.
• Oversold RSI (14) prods further downside of bullion.

Silver Price (XAG/USD) stays on the back foot at around $22.75 after falling to the lowest levels since late March the previous day. That said, the precious metal declined in the last four consecutive days before licking its wounds on early Friday.

The XAG/USD’s latest fall broke the key 200-day Exponential Moving Average (EMA) support, now immediate resistance near $22.85, which in turn joins the bearish MACD signals to keep the Silver sellers hopeful. However, the oversold conditions of the RSI (14) line prod the metal’s further downside.

As a result, the quote is likely to decline towards the 61.8% Fibonacci retracement of its March-May upside around $22.30. However, the Silver Price weakness past the key Fibonacci retracement, also known as the golden Fibonacci ratio, appears difficult.

Even if the quote breaks the $22.30 Fibonacci ratio, a broad horizontal area comprising multiple levels marked since mid-February, near $21.50-30, could challenge the XAG/USD bears.

Following that, an upward-sloping support line from late 2022, around $20.80, will be in the spotlight.

On the contrary, the XAG/USD rebound past the 200-day EMA level of around $22.85 isn’t an open invitation to the Silver buyers as a convergence of the three-week-old descending trend line and 50% Fibonacci retracement, near $23.05, will check the metal’s further upside.

Silver Price: Daily chart

Trend: Limited downside expected