Silver Price Analysis: XAG/USD stuck in range below $27.50 ahead of Powell
|- Silver bulls continue to face rejection at 50-HMA.
- Hourly RSI turns bearish, suggesting more downside.
- $26.05 could continue to limit the declines in XAG/USD.
Following a staggering $1.5 rally seen on Wednesday, Silver (XAG/USD) trades choppy so far this Thursday, although remains trapped within a 50-cents range below $27.50.
From a short-term technical perspective, the white metal fell as low as $26.92 in the Asian trades, piercing through the horizontal 200-hourly Simple Moving Average (HMA), then at $27.02.
The price, however, quickly recaptured the 200-HMA, forming higher lows on the hourly chart since then.
At press time, the spot is trading well above the bullish 21-HMA at $27.23, looking to retest the horizontal trendline resistance placed at $27.53.
Acceptance above the latter could open doors for a test of the multi-year highs beyond $29.
On the flip side, a break below the 200-HMA could trigger a sharp decline towards the next relevant support at $26.75, the confluence area of the 50 and 100-HMAs.
Sellers will then target Wednesday’s high of $26.09 should the downside pressure intensify.
XAG/USD: Hourly chart
XAG/USD: Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.