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.

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