Silver Price Analysis: XAG/USD slides as US economic optimism hurts precious metals
- Silver prices fall for a second day on positive US news and Fed tightening speculations, with XAG/USD trading at $22.57.
- Drifting below the 200-day EMA and a negative Rate of Change suggest XAG/USD will likely continue its downward trend.
- AG/USD eyes support at $22.11 and resistance at the $23.00 mark, with further movement influenced by the 200-day EMA.
Silver price slides for the second consecutive day due to positive news from the United States (US), which cooled recessionary fears while increasing speculations of further tightening by the US Federal Reserve (Fed). Therefore, the XAG/USD is trading at $22.57, down 0.56%
XAG/USD Price Analysis: Technical outlook
In the medium term, the XAG/USD is set to continue to trend lower after drifting below the 200-day Exponential Moving Average (EMA)
The XAG/USD would likely continue to trend lower in the medium term after breaching the 200-day Exponential Moving Average (EMA). In addition, the May 26 daily low of $22.68 was surpassed, seen as the latest support before the XAG/USD extended its fall toward the March 16 daily low of $21.47.
Further cementing the bearish case is the Relative Strength Index (RSI), sitting below its neutral line, while the three-day Rate of Change (RoC) shifted negatively, a sign that sellers are in charge.
The XAG/USD first support would be the June 23 swing low of $22.11. A breach of the latter will expose the $22.00 figure, followed by the abovementioned March 16 swing low of $21.47, before dropping towards the $21.00 figure.
If the XAG/USD reclaims the 200-day EMA, the next resistance would ev the $23.00 mark before testing the 20-day EMA at $23.19.
XAG/USD Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
