XAG/USD dips below $32.50 near the 50-day EMA.
FUNDAMENTAL OVERVIEW:
Silver price may consolidate around the $30.00 support zone, while the pair is currently challenging initial resistance at the 50-day EMA near $32.44.
Silver (XAG/USD) continues to decline for the third consecutive session, trading near $32.30 per troy ounce during Thursday’s European session. The daily chart technical point to a potential bearish reversal, as the metal breaks below its previously established ascending channel.
The price remains beneath both the 9-day and 50-day Exponential Moving Averages (EMAs), reinforcing a weakening short-term momentum. Additionally, the 14-day Relative Strength Index (RSI) has slipped below the 50 mark, signalling a sustained bearish bias.
On the downside, silver may consolidate near the $30.00 support zone. A decisive break below this area could intensify selling pressure, potentially driving prices toward the eight-month low of $28.00, last seen on April 7.
On the upside, XAG/USD is currently testing resistance at the 50-day EMA near $32.44, with the next hurdle at the 9-day EMA around $32.72. A breakout above these levels could reinvigorate short-term bullish momentum and potentially guide the pair back into its previous ascending channel pattern. The next key resistance lies near the seven-month high of $34.59, recorded on March 28.
SILVER TECHNICAL ANALYSIS CHART:
Technical Overview:
XAG/USD is trading within an up channel.
XAG/USD is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Neutral Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 32.60
Immediate support level: 31.70
HOW TO TRADE XAG/USD
Following a prolonged downtrend, silver entered a consolidation phase and found support, leading to a sharp bullish reversal. However, the upward momentum quickly faded as the pair faced rejection at a key resistance level and reversed lower, breaking below its support. Currently, silver is attempting a pullback toward immediate resistance. If the price fails to break higher, a renewed decline could be expected.