Silver holding in bearish territory below $23 psychological level

• Silver bears stay on top on a key week for the US dollar. 
• Commodities will be in focus as the Fed is expected to cause volatility.  

Silver prices are slightly lower in Asia despite the offer in the greenback.

At the time of writing, XAG/USD is trading at $23.01 and off by 0.03%.

Silver was down by nearly 1% by the close of play on Friday, falling from a high of $23.32 to a low of $22.87.

The dollar index DXY, which measures the US currency against six rivals, rose to as high as 93.734 for the first time since early November, before trading 0.1% lower at 93.491.

The message that the dollar is sending the market is bullish given the ground it has made through monthly resistance near 93.50. For the week, it posted a 1% gain, the most in two months. 

Meanwhile, the markets are looking forward to the end of the week showdown in the Jackson Hole where some expect a taper announcement.

Moreover, the delta variant is also a risk for industrial metals and a slowdown in growth would dent industrial demand for silver.

Moreover, bullish for the greenback, an eventual taper should slow money supply growth, which is a critical driver of the demand for all collectables, including those silver coins that have fueled retail demand for bullion. 

Silver technical analysis

A break of current support opens up risks to further downside. 

Silver has already crossed into a bearish territory below the 200-day smoothed moving average and bears can target a -272% Fibo retracement of the correction towards 21.57.

However, should the price turn up and the bulls break the dynamic trendline resistance, then the 61.% Fibo target guards 25.50/00 structural resistance.