Silver Price Analysis: XAG/USD retreats from weekly highs around $30.00

Silver rises 1.45% as Fed leaves policy unchanged, adjusts inflation outlook, and anticipates one rate cut.
XAG/USD shows a double-top pattern indicating potential declines; initial support at $29.00.
Resistance at $30.05; surpassing this could target recent highs, though buyers continue to face challenges.

Christian Borjon Valencia FXStreet

Silver prices registered solid gains of 1.45% on Wednesday, as the US Federal Reserve kept monetary policy unchanged while upwardly reviewing its inflation expectations and adjusted its estimates for the federal funds rate. As the US central bank projects one rate cut, the XAG/USD trades at $29.59, down 0.29% as Thursday’s Asian session begins.

XAG/USD Price Analysis: Technical Outlook

Silver's double-top chart pattern remains in effect, suggesting that the metal's spot prices might decline further. XAG/USD fell below the May 24 low of $30.05, confirming the double-top pattern.

The initial support for XAG/USD is 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.

Conversely, 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 struggling to reclaim $30.00, indicating potential for further downside.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	29.64
Today Daily Change	0.36
Today Daily Change %	1.23
Today daily open	29.28

Trends
Daily SMA20	30.65
Daily SMA50	28.84
Daily SMA100	26.2
Daily SMA200	24.69

Levels
Previous Daily High	29.86
Previous Daily Low	29.04
Previous Weekly High	31.55
Previous Weekly Low	29.12
Previous Monthly High	32.51
Previous Monthly Low	26.02
Daily Fibonacci 38.2%	29.35
Daily Fibonacci 61.8%	29.55
Daily Pivot Point S1	28.92
Daily Pivot Point S2	28.56
Daily Pivot Point S3	28.09
Daily Pivot Point R1	29.75
Daily Pivot Point R2	30.22
Daily Pivot Point R3	30.58

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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