• XAG/USD fall on broad US dollar strength across the board.
  • Higher US bond yields weigh on the XAG/USD.
  • From the technical perspective, a daily break below $21.65 could pressure XAG/USD towards $20.00 and beyond.

Silver (XAG/USD) is still under pressure, slumps for the second day out of three, trading at $21.54, down around 4% at the time of writing. XAG/USD slide is attributed to increasing US dollar demand, with the US Dollar Index rising 0.64%, sitting at 94.34

Market sentiment is upbeat. Major US stocks indices finished in the green, with the S&P 500 and the Dow Jones posting gains of 0.16% and 0.23%, respectively, except for the Nasdaq Composite, which dropped 0.24%, during the New York session.

Regarding US bond yields, which influence precious metals prices, the 10-year benchmark note rate seesawed around 1.524%, unchanged.

XAG/USD Price Forecast: Technical outlook

Daily chart.

XAG/USD is testing the low of September 24, 2020, at $21.65. A sustained break of the latter would exert substantial downward pressure on silver. The following support level would be July 15, 2020, high at $19.48. In case of a break of that level, the psychological $19.00 would be the seller's next target.

On the flip side, failure at $21.65 can pave the way for further gains. The first supply zone for XAG/USD would be the psychological $22.00 level, immediately followed by the August 9 low at $22.17. A decisive break of the level mentioned above could push the price towards $23.00.

The Relative Strength Index is at 28, in oversold levels, which could signal XAG/USD consolidation ahead. 

ADDITIONAL LEVELS TO WATCH

XAG/USD

Overview
Today last price 21.54
Today Daily Change -0.91
Today Daily Change % -4.05
Today daily open 22.45
 
Trends
Daily SMA20 23.39
Daily SMA50 23.93
Daily SMA100 25.41
Daily SMA200 25.78
 
Levels
Previous Daily High 22.67
Previous Daily Low 22.1
Previous Weekly High 23.15
Previous Weekly Low 22.04
Previous Monthly High 26
Previous Monthly Low 22.17
Daily Fibonacci 38.2% 22.32
Daily Fibonacci 61.8% 22.45
Daily Pivot Point S1 22.15
Daily Pivot Point S2 21.84
Daily Pivot Point S3 21.58
Daily Pivot Point R1 22.72
Daily Pivot Point R2 22.98
Daily Pivot Point R3 23.28

 

 

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