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.

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