Silver: XAG/USD drops as a doji emerge, while indicators suggest a potential pullback
- Silver price retreats after hitting daily high on upbeat US economic data.
- Upward momentum for XAG/USD remains despite recent losses.
- XAG/USD may drop unless it holds above a critical support level.
Silver price retraces after hitting a daily high of $25.37, last seen at around $25.05, as US Treasury bond yields edged up, following upbeat US economic data. At the time of writing, the XAG/USD is trading at $25.05, down 0.83%.
XAG/USD Price Analysis
XAG/USD remains upward biased, although it posted back-to-back days of losses, led by Thursday’s price action, which printed a doji, followed by a bearish candlestick, about to close below the April 20 low of $25.06. However, the uptrend remains in play unless the XAG/USD drops below the confluence of the April 19 low and the 20-day EMA around $25.58/65.
If XAG/USD clears April’s 20 high at $25.49, it could exacerbate a rally to the YTD high of $26.08. A breach of the latter will expose the last year’s high at $26.95, shy of the $27.00 figure.
Conversely, the XAG/USD could test February’s 2 high-turned-support at $24.63, immediately followed by the 20-day EMA. If the Relative Strength Index (RSI) continues to drop, as it has done since six-days ago, a test of the $24.00 figure is on the cards. Downside risks remain eyed at the 50-day EMA at
XAG/USD Daily Char
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.
