XAG/USD looks vulnerable near two-week lows around $24.50

• Silver continued to lose ground on Tuesday and fell to a two-week low around $24.50.
• The technical setup favors bearish traders and supports the prospects for further downside movement.
• Any significant recovery above $25.00 could now be seen as a selling opportunity.

XAG silver added to the previous day’s heavy losses and witnessed some follow-up selling for the third day in a row on Tuesday. This also marked the third day of a negative move in the previous four and dragged spot prices to a fresh two-week low around $24.50 mid-European session.

XAG/USD has now found acceptance below the key psychological $25.00 level and looks vulnerable to extending its recent decline from the $27.00 zone or the highest level since June 2021. The outlook is bolstered by the fact that that the oscillators on the daily chart have been losing traction.

Some follow-through selling below the daily low, which coincides with the 50% Fibonacci retracement of the strong move up $22.00-$26.95, will reaffirm the bearish bias. XAG/USD would then become vulnerable to accelerate the decline towards testing levels below $24.00, or the 61.8% Fibonacci level.

On the other hand, the 38.2% Fibonacci level around $25.00 now appears to act as strong immediate resistance. Any subsequent upside move could be seen as an opportunity for bearish traders and risks fading quickly near the $25.75-$25.80 zone, or the 23.6% Fibonacci level.

This is closely followed by the $26.00 round level, which if broken decisively would flip the bias in favor of the bullish traders. The next relevant hurdle is pegged near the $26.40 region, above which XAG/USD is more likely to make a further attempt to conquer the $27.00 mark.

daily chart

Technical levels