On a day that shows a dearth of market fundamentals, the technical picture on the XAG/USD silver price daily chart reveals the presence of another pattern: the bearish flag. This flag has formed as bulls struggle to maintain the integrity of the 200-day moving average.
Tomorrow, the US Consumer Price Index data will be released. The markets are expecting a slight increase in the headline and core numbers, following the trajectory of the Producer Price Index released last week. A higher inflation figure could prompt expectations of the Fed acting sooner to raise rates, which could enhance bond yields and the US Dollar and hurt the non-yielding white metal.
Technical Outlook for Silver Price
Silver price on the XAG/USD daily chart is now testing the lower border of the channel, which could also serve as a bearish flag of the preceding price move from 22 March is considered. A breakdown of the channel is the expected resolution for this pattern, targeting 24.569 initially on its way to the price projection at $24. Below this ceiling of the demand zone, 23.164 and 22.549 are potential downside targets as well.
On the other hand, a recovery bounce enables the XAG/USD pair to target the 25.386 resistance mark, with a break of the consolidation area enabling a further push towards 26.034. 26.325 lies ahead, as does 26.868 if the bulls can push the advance harder.
Silver Price (XAG/USD) Daily Chart
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