Silver Price (XAG/USD) Bounces Strongly As Greenback Remains Under Pressure

Silver price maintained intraday gains after Fed Governor Brainard’s remarks put the US Dollar on the back foot. Falling yields on the 10-year note are also helping to push back the bulls on the USD, allowing the non-yielding metal to attract some demand.

US 10-year treasury yields fell on the day in a quiet trading session over growing anxiety in the raised volatility in risk-driven assets. Particularly concerning to investors has been the overall effect of the downturn in the cryptocurrency markets, which has sparked a FUD reaction that has spilled over onto other markets at a time of sparse economic data.

Technical Outlook for Silver Price

The active candle’s upside move arose from a bounce on 27.502, coinciding with the lower boundary of the rising channel. This bounce allows the silver price to aim for the 28.073 resistance, with 28.359 being the only other barrier before the XAG.USD pair tests the channel’s upper border. A clearance of that barrier brings 29.02 into the picture. 

On the other hand, a rejection at 28.073 or 28.359 sets up a potential return move to challenge the support at 27.502. If the new target gives way to selling pressure, 26.86 and 26.62 could become the immediate targets for the breakdown move.

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XAG/USD Daily Chart

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