Silver (XAG/USD) edged higher during the Asian session on Wednesday, trading above the $73.00 mark after recently hitting a three-week low on Tuesday. Despite this modest recovery, the metal lacked strong follow-through as market participants moved to the sidelines ahead of the crucial FOMC policy update, indicating a wait-and-see approach among traders [1].
Technical indicators continue to favor bearish traders. The recent failure to break above the 200-hour Exponential Moving Average (EMA) and a drop below the 38.2% Fibonacci retracement level of the March-April rally have reinforced the negative outlook for XAG/USD. The Relative Strength Index (RSI) remains weak at around 39, and the MACD histogram is slightly negative, both suggesting persistent downside pressure even as the recent sell-off shows tentative signs of stabilization [1].
Further selling below the overnight swing low near $72.00, which marks the 50% retracement level, would be needed to confirm a renewed bearish bias. If this occurs, silver could target deeper Fibonacci levels at $69.39 and $65.73, where buyers may attempt to slow any extended decline. On the upside, resistance is seen at the 38.2% retracement near $74.54, followed by the 200-EMA around $76.89 and the 23.6% retracement at $77.72, which together form a broader supply zone [1].
No explicit market reactions or analyst opinions regarding the FOMC outcome or forward-looking statements were provided in the article. The overall tone remains cautious, with technicals suggesting continued bearish momentum unless key support levels are breached or the Fed's decision alters the current market sentiment [1].
CONCLUSION
Silver prices are consolidating above $73.00 as traders await the upcoming FOMC policy update, with technical indicators pointing to ongoing bearish momentum. Key support and resistance levels will likely determine the next directional move, but for now, market participants remain cautious and on the sidelines.