Silver prices on the XAGUSD chart are lower today, despite a general fall in the US Dollar across board. The industrial metal failed to get sufficient uplift after mixed PMI results from around the world last week.
The US and China are still respecting many aspects of the Phase 1 trade deal, and China continues to purchase large volumes of agric products from the US. Demand for various commodities has started to pick up, but industrial activity continues to lag as per data released from the UK and Europe last week. The record contraction in GDP from industrial giant Japan also weighed heavily on silver prices. Silver price is currently trading at 26.532, or 0.77% lower as at the time of writing.
Technical Outlook for XAGUSD
Silver price action on the XAGUSD daily chart shows a possible bullish pennant in evolution, with the current candle testing the 26.325 price support. Further bearish pressure could force a breakdown of that support line, which brings in 24.661 into focus as the next possible target. The 23.027 and 21.332 price levels form distant downside targets. A decline would invalidate the pennant, and the pennant portion of the pattern would then be considered as a triangle topping pattern.
Conversely, a bounce from the current support allows the silver price to aim for 28.073, with 29.873 forming the upside target that matches the 2020 highs. This high must be broken to the upside for a continued advance on the silver price. This advance completes the bullish pennant and allows silver prices to find a new price objective that matches the pole component of this pattern as 2020 winds down. This could take silver prices beyond the $30 mark. Whether this will happen this last trading week of August or not remains to be seen.