- XAG/USD is falling from around $25.40 to $24.10 as US inflation cools and the labor market eases.
- The RSI indicator and 3-day RoC show a bearish outlook for Silver, with the 200-DMA in sight.
The price of silver is falling across the board, according to data from United States (US) showed that inflation is cooling while the labor market is starting to ease as US central bank (Fed) officials complain about its tightness. US Treasury yields fall but the US dollar (USD) rises to fresh weekly highs, a headwind for XAG/USD prices. At the time of writing, XAG/USD is trading around $24.20, down 4.50%.
XAG/USD Price Analysis: Technical Outlook
XAG/USD’s decline dragged prices into a test of the 50-day exponential moving average (EMA) and broke two crucial support levels on its way south: first, the 20-day EMA retreated around $25.08, second, a break of the two-week support trendline around $24.63 , which accelerated the white metal’s downtrend towards testing other key support levels.
silver it is challenging the five-month old trend line of previous resistance, turning support around $24.20, which could drop to $24.00 after a break, followed by the 100-day EMA at $23.46. A breach of the latter will expose the 200-day EMA at $22.74.
Conversely, if XAG/USD regains $24.63, it could pave the way to $25.00 per troy ounce. This would create a bullish hammer, push Silver’s bias to the upside and could open the door to testing the year-to-date (YTD) high of $26.13.
The Relative Strength Index (RSI) turned bearish after crossing the 50-center line. The three-day rate of change (RoC) shows sellers in charge, while XAG/USD extends its intraday slide.
