Silver Price Analysis: XAG/USD remains on the defensive, $25.00 holds the key for bulls
- Silver witnessed some selling on Friday and snapped two successive days of the winning streak.
- Bulls struggled to capitalize on this week’s rebound and faced rejection near the 200-hour SMA.
- Sustained weakness below the $24.85 area is needed to support prospects for additional losses.
Silver edged lower on Friday and snapped two days of the winning streak, through the intraday downtick lacked follow-through selling. The XAU/USD remained on the defensive through the first half of the European session and was last seen trading around the $25.25-$25.30 region, down 0.40% for the day.
From a technical perspective, this week's goodish rebound from the $24.45 area faltered near the 200-hour SMA. The mentioned barrier, currently around mid-$25.00s, should act as a pivotal point, which if cleared decisively should set the stage for a further near-term appreciating move for the XAG/USD.
The momentum could then push spot prices beyond the $25.75-$25.80 intermediate hurdle and allow bulls to aim back to reclaim the $26.00 mark. The next relevant resistance is pegged near the $26.40 region, above which the XAG/USD could climb further towards the $27.00 round figure en-route mid-$27.00s.
On the flip side, the key $25.00 psychological mark, closely followed by the $24.85 region now seems to protect the immediate downside ahead of the $24.45 area amid slightly bullish oscillators. Some follow-through selling would make the XAG/USD vulnerable to accelerate the slide to test sub-$24.00 levels.
Silver 1-hour chart
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Key levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
