Silver Price Analysis: XAG/USD turns south after rejection at $28 once again
- Silver drops as the US dollar rebounds, snaps two-day uptrend.
- XAG/USD fails to find acceptance above the $28 mark once again.
- $27.50 is the last line of defense for the XAG bulls.
Silver (XAG/USD) is snapping its two-day bullish momentum, as sellers return on rejection at the $28 mark once again.
The white metal pulled back, as the US dollar index recovers ground above 90.00 amid jittery markets. Growing inflation concerns, expectations around the Fed’s next policy move and US-China tussle keep the dollar’s haven demand underpinned.
From a near-term technical perspective, silver price is challenging the upward-sloping 50-hourly moving average (HMA) at $27.70.
A sustained break below the latter could expose the $27.50 psychological level again, around where Monday’s low coincides.
The hourly Relative Strength Index (RSI) edges lower below the midline, suggesting that there appears more room to the downside.
The $27 round figure could be put to test if Monday’s low caves in.
Silver Price Chart: Hourly
On the other hand, the immediate upside barrier is seen at $27.82, which is the convergence of the 21 and 200-HMAs.
The next relevant target for the buyers is marked at $28. A convincing break above the latter is needed to resume the recent upswing.
The June 3 high of $28.23 will be the level to beat for the XAG bulls.
Silver Additional levels
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.
