XAG/USD dropped in the short term as the USD dominates the currency market. DXY’s rally forced the price of gold and silver to slip lower. Silver could still resume its swing higher as long as it stays above the near-term downside obstacles. Today, the fundamentals could drive the markets. The US Flash Services PMI is expected at 45.5 above 43.7 points in the previous reporting period, while the Flash Manufacturing PMI could drop from 51.5 to 51.0 points signaling a slowdown in expansion. 

 

Technically, as long as it stays above the uptrend line and above the weekly pivot point of 19.459, XAG/USD could still approach and reach the previous highs and the downtrend line. Taking out the uptrend line activates more declines. On the other hand, a new higher high, a valid breakout through the downtrend line and above the 20.014 could confirm an upside reversal.

Chart


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