- Silver is posting modest gains after closing in the red for three days.
- The price could struggle to overcome the $ 25.50 hurdle any time soon.
After closing the previous three trading days in negative territory, the pair XAG / USD it experienced a rebound on Tuesday and was last seen gaining 0.71% on the day at $ 24.45.
In the absence of significant fundamental drivers, this move appears to be due to widespread USD weakness and the technical outlook remains neutral in the short term. The Relative Strength Index (RSI) on the XAG / USD daily chart remains relatively flat near 50, confirming the pair’s indecision.
On the downside, the 20-day SMA appears to have formed support for XAG / USD at $ 24.25. With a daily close below that level, the pair could extend its slide towards the 100-day SMA at $ 23.35 before $ 23 (psychological level / 38.2% Fibonacci retracement of the March-August uptrend).
Resistances, on the other hand, line up at $ 25 (psychological level) and $ 25.50 (50-day SMA / 23.6% Fibonacci retracement). Unless XAG / USD makes a daily close above the latter, the bulls could have a difficult time taking control of the price.
Daily chart
Credits: Forex Street
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