FX.co ★ XAG/USD, SILVER

Silver Trend Outlook: The discussion currently revolves around the analysis of the Silver price behavior. Silver quotes have reached the descending channel's lower trend line on the daily time-frame. If they break through and continue declining past the previous zigzag "V" low, it indicates the medium-term downward trend will persist, developing the second zigzag "Y." The MACD and RSI indicators, which are neutral, won't hinder this progression. That makes sense as the current downward correction is relatively short (less than 38.2%) compared to the price range of the previous upward wave formation. The price of silver is gradually declining to around 67.925 per troy ounce at the start of the European session on Tuesday. Analysis of the daily chart indicates a bearish trend, as the XAG/USD pair is consolidating within a descending channel. Additionally, the 14-day Relative Strength Index (RSI) is below 50, confirming the downtrend. The momentum Moving Average Convergence Divergence (MACD) indicator plays a crucial role in our analysis, pointing to a bearish trend for silver. That suggests that while the overall trend might still be positive, the momentum is weakening since the MACD line is below the signal line.

A further confirmation of the strengthening of the downtrend would be if the MACD line crosses below the center line. Conversely, silver may find immediate support near the 50-day exponential moving average (EMA) at 67.925. A break below this level could pressure silver, pushing it towards the psychological level of 66.975, followed by the lower threshold of the descending channel around 66.635. For resistance, silver might face its nearest barrier at the significant 67.925 level, followed by the upper limit of the descending channel at 67.925. Breaking above this could lead the XAG/USD pair to test the four-week high of 67.925.