XAG/USD Nears $30.00 Support, Bears in Control.
XAG/USD bears maintain control near a three-week low, with the $30.00 level acting as a crucial support
FUNDAMENTAL OVERVIEW:
- Silver faces selling pressure for the third consecutive day on Wednesday, with technical indicators suggesting the potential for further decline.
- Any recovery attempts are expected to be limited, with resistance around the $31.00 level.
Silver (XAG/USD) struggles to maintain momentum after an overnight bounce from around the $30.00 psychological level, a three-week low and continues to trade with a bearish bias for the third consecutive day on Wednesday. The metal is currently positioned just above the mid-$30.00s, appearing vulnerable to extending its pullback from last week’s high, the strongest since December 2012.
Technically, repeated failures to sustain levels above $32.00 have resulted in a bearish multiple-tops pattern on the daily chart.
CPI data and the Federal Reserve Minutes are pivotal for Silver’s next move. The Fed minutes may expose internal disagreements over the September rate cut, influencing future policy decisions.
Silver’s outlook is closely tied to the upcoming CPI data, as inflation trends shape Fed policy and price movement. Diverging views within the Fed on rate cuts highlight the prevailing uncertainty, contributing to increased volatility in precious metals like silver.
In the near term, silver’s ability to maintain support above the 50-day moving average at $29.60 will be key. If this level holds, a rebound could be on the horizon, particularly if inflation data signals easing price pressures, which may fuel dovish expectations from the Federal Reserve.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is currently trading within an up channel.
Silver is positioned above the 20&50 Moving Average (SMA).
The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 31.10
Immediate support level: 29.80
HOW TO TRADE SILVER
Silver experienced a significant price increase but subsequently faced resistance and pulled back to form support. Despite another attempt to rally, it was unable to break through the previous high and retreated. If silver can maintain its current price level, it may have the potential to resume its upward trend.