Silver Price Analysis: XAG/USD losses momentum near $24.00, points to further losses
|- XAG/USD retreats after hitting a one-week high at $23.94.
- Metals correct lower amid a stronger US dollar and a decline in equity prices.
Silver is falling 0.75% on Tuesday amid a rally of the US dollar. The greenback continues to recover after Friday’s sell-off. XAG/USD Peaked on Asian hours at $23.94 before turning to the downside.
Near the $24.00 area, the metal lost momentum and started to pullback. It accelerated after weaker-than-expected US economic data. It bottomed at $23.55 and then trimmed losses, rising to $23.66.
Very short-term technical indicators are biased to the downside. The RSI and momentum in the four-hour chart are moving south. XAG/USD is testing an uptrend line and the 20-SMA. A break under $23.55 would expose the next support at $23.40 (Aug 16 low).
If XAG/USD holds above $23.65 it could recover strength. To clear the way for a bullish extension it needs to break above the strong barrier of $24.00.
Silver 4-hour chart
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