- The price of silver breaks the two-day uptrend as the US dollar strengthens.
- XAG / USD fails to find acceptance above the $ 28.00 level once again.
- The $ 27.50 level is the last line of defense for the XAG bulls.
Silver (XAG / USD) is breaking its two-day bullish momentum, as sellers turn back after the rejection at the $ 28.00 level once again.
The white metal has pulled back as the DXY US Dollar Index recovers above the 90.00 level amid nervous markets. Growing concerns about inflation, expectations about the Fed’s next monetary policy move, and the struggle between the United States and China keep demand for the safe-haven dollar propped up.
From a short-term technical perspective, the price of silver is challenging the upward sloping 50 hourly moving average at $ 27.70.
A sustained break below this region could again expose the psychological level of $ 27.50, where it coincides with Monday’s low.
The RSI on the 1 hour chart is moving lower below the midline, suggesting that there appears to be room for further declines in the XAG / USD.
The round level of $ 27.00 could be tested if Monday’s low is broken.
On the other hand, the immediate bullish barrier is seen at $ 27.82, which is the convergence of the 21 and 200 hour SMAs.
The next relevant target for buyers is $ 28.00. A convincing break above this level is needed to resume the recent rally.
The June 3 high of $ 28.23 will be the level to beat for the XAG bulls.
Silver 1 hour chart
Silver technical levels
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