Silver Price Analysis: XAG/USD rebounds from two-month lows, lacks follow-through

Silver battles $26 mark on the road to recovery.
XAG/USD poised for deeper losses on a drop below $25.55.
RSI recovers but still remains in the bearish zone. s

Dhwani Mehta FXStreet

Silver price (XAG/USD) has quickly pulled back from fresh two-month lows of $25.55, now extending the break above the $26 mark.

The bulls appear to extend the recovery momentum, backed by the renewed uptick in the Relative Strength Index (RSI) on the four-hour chart.

The leading indicator has recovered from the oversold territory to currently trade at 35.35, offering some respite to the silver bulls.

The next relevant target for the buyers is seen at $26.50, the June 18 highs, which coincided with the downward-sloping 21-Simple Moving Average (SMA) on said time frame.

However, if the downside bias resumes, a retest of the two-month lows will be well on the cards.

Further south, the $25 round figure will be on the sellers’ radars.

Silver Price Chart: Four-hour chart

Silver Additional levels

XAG/USD

Overview
Today last price	26.08
Today Daily Change	0.26
Today Daily Change %	1.01
Today daily open	25.8

Trends
Daily SMA20	27.6
Daily SMA50	27.02
Daily SMA100	26.63
Daily SMA200	25.72

Levels
Previous Daily High	26.5
Previous Daily Low	25.76
Previous Weekly High	28.02
Previous Weekly Low	25.76
Previous Monthly High	28.75
Previous Monthly Low	25.81
Daily Fibonacci 38.2%	26.04
Daily Fibonacci 61.8%	26.21
Daily Pivot Point S1	25.54
Daily Pivot Point S2	25.28
Daily Pivot Point S3	24.8
Daily Pivot Point R1	26.28
Daily Pivot Point R2	26.76
Daily Pivot Point R3	27.02

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro defends the 1.1500 level ahead of a string of US labour data

The Euro (EUR) posts marginal gains against the US Dollar (USD) on Tuesday as Monday’s reversal from three-week highs at 1.1560 has been contained at 1.1500 so far. A mild risk appetite on hopes of a negotiating process in Iran and investors’ cautiousness ahead of the release of key US labour indicators are providing some support to the pair on Tuesday.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.