Silver Price Analysis: XAG/USD drop as double-top chart pattern remains intact

Silver prices drop 1.65% as the US Dollar gains 0.15%.
Double-top chart pattern indicates potential further decline, with key supports at $29.00 and below.
US inflation data and FOMC decision on Wednesday poised to impact silver prices and the broader market.

Christian Borjon Valencia FXStreet

Silver prices retreated on Tuesday and fell 1.65% as the Greenback remained in the driver’s seat and posted gains of 0.15%, ahead of crucial data to be revealed on Wednesday. US inflation figures and the FOMC’s monetary policy decision would dictate the US Dollar's faith. The XAG/USD trades at $29.27 and gains some 0.12% as Wednesday’s Asian session begins.

XAG/USD Price Analysis: Technical outlook

Silver's double-top chart pattern remains in play, hinting that spot prices of the grey metal will decline further. XAG/USD fell below the May 24 low of $30.05, confirming the double-top pattern.

The initial support for XAG/USD remains at $29.00, followed by the June 7 low of $29.12. Breaking below this level could lead to a drop under $29.00, then to the May 18, 2021, high turned support of $28.74, and subsequently to the June 10, 2021, high of $28.34. The final target is the double top objective at $27.80.

On the other hand, if XAG/USD moves upwards and closes above $29.00, it could challenge the May 24 low, which has turned into resistance at $30.05. Buyers are currently struggling to reclaim $30.00, which suggests potential for further downside.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	29.27
Today Daily Change	-0.48
Today Daily Change %	-1.61
Today daily open	29.75

Trends
Daily SMA20	30.62
Daily SMA50	28.78
Daily SMA100	26.13
Daily SMA200	24.66

Levels
Previous Daily High	29.82
Previous Daily Low	29.14
Previous Weekly High	31.55
Previous Weekly Low	29.12
Previous Monthly High	32.51
Previous Monthly Low	26.02
Daily Fibonacci 38.2%	29.56
Daily Fibonacci 61.8%	29.4
Daily Pivot Point S1	29.31
Daily Pivot Point S2	28.88
Daily Pivot Point S3	28.63
Daily Pivot Point R1	30
Daily Pivot Point R2	30.25
Daily Pivot Point R3	30.69

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.