- The XAG/USD pair has moved lower after breaking support levels, holding above the 200 day EMA at $22.96, which is now under pressure.
- Oscillators such as the relative strength index (RSI) and the three-day exchange rate (RoC) indicate a negative scenario for silver.
- If the price breaks above the May 26 low, silver could drop to the $21.00 level.
- If the buyers manage to push the XAG/USD back above the 100-day EMA at $23.54, a challenge to $24.00 could be expected.
The price of the Silver It plunges more than 3%, with sellers eyeing a challenge from the 200-day EMA, as overall US Dollar (USD) strength drives financial markets on Tuesday. Fed spokesmen will deliver remarks, while Fed Chairman Jerome Powell’s testimony in the US Congress dampened market sentiment. At the time of writing these lines, the XAG/USD it is trading at $23.14 after hitting a daily high of $24.02.
XAG/USD Price Analysis: Technical Perspective
XAG/USD has drifted lower after breaking support levels. However, it remains above the 200 day EMA at $22.96, which is in play as the spot price of silver continues to plummet during the North American session. Oscillators such as the Relative Strength Index (RSI) paint a negative scenario for XAG buyers, with the RSI turning negative while the three-day rate of change (RoC) is at its lowest level since May 25. .
That being said, the first support for XAG/USD would be the $23.00 figure. A break of the latter would expose the 200 day EMA, followed by the May 26 low at $22.68. If XAG/USD breaks above the latter, silver could plunge to the $21.00 area. Conversely, if the buyers of the XAG/USD recapture the 100-day EMA at $23.54, they could challenge $24.00.
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.
