XAG/USD looks vulnerable near 50 DMA, break below $20.00 expected



  • Silver is losing ground for the second day in a row and slipping to more than a one-week low.
  • The drop marks a bearish dip below a week-old trading range.
  • Bears still need to wait for a sustained break below $20.00 before placing new bets.

Silver Witnesses sold for the second day in a row on Tuesday and fell more than a week away, around the psychological mark of $20.00 during the mid-European session.

The decline follows last week’s failure near the 61.8% Fibonacci retracement level of the fall from $22.52 to $18.15 and marks a bearish break below a trading range. a week old. Adding to this, acceptance below 50% Fibo. and the 50-day SMA supports the outlook for further depreciation of XAG/USD.

That said, the oscillators on the daily chart – although they have lost ground – have yet to confirm the negative outlook. It is therefore prudent to wait for sustained weakness below the $20.00 mark before placing further bearish bets and positioning for an upcoming slide below the 38.2% Fibo. level, around the region of $19.80.

The next relevant support is anchored near the $19.55 area (last week’s low), which should now act as a key pivot point. A convincing break below would shift the bias in favor of bearish traders and expose the 23.6% Fibo. level, around the region of $19.20 to $19.15. XAG/USD could eventually drop to $19.00.

On the other hand, the 50% Fibo. level, around the $20.35 region, now appears to be acting as strong immediate resistance. Any further rise could attract further selling near the $20.65 horizontal area. This, in turn, should limit any further gains for XAG/USD near the 61.8% Fibo. level, around the region of $20.85.

Silver daily chart

Key levels to monitor

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