The XAGUSD pair is set for its most significant daily loss since 9 November, after silver prices fell 3.35% on Friday as at the time of writing. The fall in silver prices follows that of gold just before the onset of the New York session.
The fall in silver prices could be due to positional realignment due to the recent settlement of silver futures. Still, it could also be due to the waning of the positive sentiment surrounding the coronavirus vaccine announcements.
Technical Levels to Watch
Today’s 3.4% slide in silver prices at the current time has found support at the 22.387 price level (28 July and 25 September lows), as it breaks below the bearish pennant pattern that was identified in one of my pieces two weeks ago. The research team of a major bank had identified a potential price move down to the $20 mark, and we see support at 20.734, which is just above the 200-day moving average. For the XAGUSD pair to meet this target, a further decline that takes out 21.637 has to occur.
On the flip side, a bounce from present support brings 23.164 back into focus for a retest, with the lower border of the pennant pattern forming a potential role-reversed resistance at 24.559. However, the momentum is firmly with sellers; any rallies may be possible points at which sellers can re-enter the market.
Please note: even if the silver prices eventually perform according to analysts’ expectations, price activity on the XAGUSD chart may interact with any of the price levels mentioned above on several occasions before meeting any projections.
Don’t miss a beat! Follow us on Telegram and Twitter.
XAGUSD Daily Chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.