Key Takeaways:
- Silver prices have dropped by over 7% in the last six days.
- Momentum indicates further downside with a bearish RSI.
- Key support levels are at $28.74, followed by $26.40 and $26.02.
XAG/USD Price Analysis: Technical Outlook
Silver prices saw a 2.40% decrease on Thursday following the Federal Reserve’s decision to maintain rates and hint at a single cut instead of the previously expected three. Currently, XAG/USD is trading at $28.95.
Looking at the technical aspect, XAG/USD shows a neutral to upward bias in price action. The 50-day moving average at $28.74 serves as crucial support, with a bounce from recent lows at $28.66. Despite this, momentum remains bearish, signaling a potential drop to the next support levels at $26.40 and $26.02.
If buyers manage to break $29.00, the next challenge is surpassing $30.00 to retest the year-to-date high of $32.51.
XAG/USD Price Action – Daily Chart
Frequently Asked Questions
Can the Silver price go even lower?
Yes, momentum suggests further downside in silver prices, with key support levels at $28.74, $26.40, and $26.02.
What factors are influencing the Silver market?
The recent decision by the Federal Reserve to maintain rates and hint at a single cut have impacted silver prices negatively.
Is there a possibility of a price rebound?
If silver buyers can break above $29.00 and surpass $30.00, there is a chance for a potential retest of the year-to-date high at $32.51.
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