XAG/USD Nears Weekly Low: Silver Prices Hover Above $33.00
XAG/USD hovers near its weekly low, holding slightly above the $33.00 level
FUNDAMENTAL OVERVIEW:
- Silver continues to face selling pressure for the third consecutive day on Friday.
- Holding below the 23.6% Fibonacci level suggests the potential for further declines.
- However, the mixed technical outlook advises caution for traders seeking aggressive bearish positions.
The silver market experienced a sharp decline during the Asian session, reflecting ongoing volatility. However, buyers have started to re-enter as we approach the US session.
From a technical standpoint, XAG/USD appears to have settled below the 23.6% Fibonacci retracement level of its recent rally from the late February low near $30.80, reinforcing the potential for further downside. However, while daily chart oscillators are losing momentum, they remain in positive territory. As a result, any additional decline will likely encounter solid support near the 38.2% Fibonacci level, around the $32.95-$32.90 range.
Bearish traders may look for a decisive break below this support zone before targeting a deeper pullback from the $34.20-$34.25 region, the highest level since October reached on Tuesday. If XAG/USD extends its decline, it could accelerate toward the 50% Fibonacci retracement level near $32.55-$32.50, with further losses potentially driving it to the $32.00 mark or the 61.8% Fibonacci level. A clear breakdown below this threshold would signal a potential near-term top for silver.
Overall, the technical outlook remains bullish as long as prices stay above $32.97. However, traders are looking for a decisive break above $33.60 to confirm sustained strength and signal a potential move toward higher levels.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Silver is trading within a up channel.
Silver is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 33.50
Immediate support level: 32.62
HOW TO TRADE XAG/USD
Silver experienced a sharp rally, followed by a corrective pullback that established a support base before reversing higher and breaking key resistance levels. Currently, it is retracing toward a support zone. If this zone holds, Silver could regain momentum and resume its upward trajectory, targeting further gains.
