Silver Price Analysis: XAG/USD drops below $27, closes in on key support

Silver is suffering heavy losses for the second straight day on Friday.
Next support for XAG/USD is located ar $26.60.
Sellers are likely to remain in control unless silver rebounds above $27.30.

Eren Sengezer FXStreet

The XAG/USD pair lost nearly 2% on Thursday after the surging US Treasury bond yields provided a boost to the greenback in the late American session. On Friday, the bearish pressure surrounding silver remains intact and the pair was last seen losing 1.7% on the day at $26.95.

Silver technical outlook

Following Thursday's sharp drop, XAG/USD closed below the 20-day SMA for the first time in a month and the Relative Strength Index (RSI) indicator on the daily chart dropped below 50, pointing to a bearish shift in the near-term outlook.

The 200-period SMA on the four-hour chart is forming the first technical support at $26.60. If a candle on that chart manages to close below that level, $26.20 (February 18 low) could be seen as the next target ahead of $25.90 (February low).

On the other hand, the immediate hurdle could be seen at $27.30 (100-period SMA on the four-hour chart) before $28 (psychological level/February 26 high) and $28.35 (February 23 high).

XAG/USD four-hour chart

Additional levels to watch for

XAG/USD

Overview
Today last price	26.98
Today Daily Change	-0.38
Today Daily Change %	-1.39
Today daily open	27.36

Trends
Daily SMA20	27.28
Daily SMA50	26.45
Daily SMA100	25.34
Daily SMA200	23.89

Levels
Previous Daily High	28.21
Previous Daily Low	27.35
Previous Weekly High	27.96
Previous Weekly Low	26.2
Previous Monthly High	27.92
Previous Monthly Low	24.19
Daily Fibonacci 38.2%	27.68
Daily Fibonacci 61.8%	27.88
Daily Pivot Point S1	27.07
Daily Pivot Point S2	26.78
Daily Pivot Point S3	26.21
Daily Pivot Point R1	27.93
Daily Pivot Point R2	28.5
Daily Pivot Point R3	28.78

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold consolidates near $4,000 as recovery remains fragile ahead of Fed decision

Gold (XAU/USD) consolidates modest gains on Monday after last week’s sharp decline pushed the metal to $3,975, its lowest level since August. A pullback in Oil prices offers support as traders react to diplomatic efforts to ease tensions in the Middle East.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

Flight to safety meets a high earnings bar as central bank week begins

Treasuries rallied again, equities are struggling, and central banks and earnings are on the horizon. Last week, US Treasuries rallied for a second consecutive week. This pushed 10s and 30s to 5% and 5.33%, respectively, flattening the curve even as Brent crude rallied about 7% to within striking distance of March peaks at US$119.50, and tech stocks posted a second straight week of losses.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.