- XAG/USD rises to $28.21, reclaiming the key $28.00 level following US JOLTS data suggesting rate cuts.
- Momentum remains flat despite a bullish RSI, with key resistance at the 100-day DMA of $29.14.
- Sellers need to push below $28.00 to test the support at $27.71 and the 200-day DMA at $26.59.
Silver prices are recovering in late trading on Wednesday, up more than 0.74% and trading at $28.21 at the time of writing.
US data confirmed that the labor market is cooling, as shown by the latest JOLTS report in the US. This increased the chances of a 50 basis point interest rate cut at the next Fed meeting in two weeks. The grey metal rose, while US yields fell and undermined the Dollar. This allowed the precious metal to regain the $28.00 figure.
XAG/USD Price Forecast: Technical Outlook
The XAG/USD pair continues to hover around the $28.00 level, although it managed a daily close above the latter. Momentum remains flat despite the Relative Strength Index (RSI) being bullish, but the slope is almost horizontal, suggesting that neither buyers nor sellers are in control.
Key technical indicators such as the 50-day and 100-day moving averages (DMAs) above the price action suggest that silver could test lower prices in the near term. Still, sellers need to clear key support levels on their way south.
They should drag the XAG/USD prices below the $28.00 figure, followed by the September 3 low of $27.71. Further weakness will sponsor a drop towards the August 14 low of $27.18, followed by the 200-day moving average (DMA) at $26.59.
On the contrary, buyers need to reclaim the 100-day DMA at $29.14 if they want to regain control.
XAG/USD Price Action – Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
