- XAG/USD is holding near $28.00, pressured by bearish RSI and moving averages above current levels.
- Breaking below $28.00 opens the door for further declines towards $27.71, potentially targeting the 200-DMA at $26.59.
- The bulls need to reclaim the 100-DMA at $29.14 to turn the momentum around and regain control over silver prices.
Silver ended Tuesday’s session with losses of over 1.50%, after economic data in the US suggested that manufacturing activity continues to slow. While justifying the Federal Reserve’s first interest rate cut in September, the Dollar advanced sharply, relieved by the gradual cooling of the labor market. The XAG/USD is trading at $28.05.
XAG/USD Price Forecast: Technical Outlook
At the time of writing, the XAG/USD pair is hovering around the $28.00 mark after hitting a two-week low of $27.71, although buyers have regained some ground. However, the momentum is tilted to the downside, as shown by the Relative Strength Index (RSI) and the 50 and 100 daily moving averages (DMAs) that are sitting above the current price of Silver.
For a bearish resumption, the XAG/USD pair must clear 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-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.
