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Silver slides as XAG/USD stays below key moving averages
XAG/USD is hovering near $56.8 an ounce and risks a retest of the $55.63 seven-month low before any turn.
Silver prices are extending losses for a second straight day, with XAG/USD trading around $56.8 per troy ounce during European hours, technical analysis suggests.
The daily chart view points to continued bearish control, with spot price holding below both the nine day and 50 day exponential moving averages, while the 14 day RSI sits near 35, just above oversold territory.
Analysts say sellers have been defending areas where they are expected to appear, keeping the pair below the upper boundary of a descending channel and reducing the odds of an upside breakout.
Near term, attention centers on a primary support test at the seven month low of $55.63 recorded on June 24, while resistance is flagged near the channel’s upper boundary around $58.5 and the nine day EMA near $58.68. A sustained break above that zone could shift the outlook toward the 50 day EMA area around $65.93, FXStreet reports.
Latest closeSilver $58.13 ▼1.1%