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Silver Prices: Break to This Level Could Resume Downtrend

Silver continues to trade sideways for the day in its pairing with the US Dollar. A look at the XAG/USD pairing will show that within the context of the daily pivot points, the intraday range has been between $14.943 to the downside (which is where the S1 pivot point is located) and $15.086 to the upside (close to the R1 pivot). These areas correspond to the 50% and 61% Fibonacci retracement levels drawn on the daily chart from the swing high of March 21 to the swing low of May 29.

XAG/USD Daily Chart

The XAG/USD pair is presently trading at $15.032, with the RSI signal line testing its previous key levels. The pair is expected to remain in consolidation for the day, as long as the key support of $14.94 and the key resistance of $15.08 hold firm.

If the price is able to close above the key support area, then $15.19 and $15.26 and $15.50 will come into focus as targets for the week.

On the flip side, if price resumes the long term downtrend by breaching the $14.94 support area, this will pave the way for a test of the lower support levels seen at $14.87, $14.78 and $14.50 respectively.

XAG/USD Hourly Chart