Silver Price Analysis: XAG/USD surges amidst high US bond yields, strong USD
|- Silver is still bullish but could test a four-month-old resistance-turned-support trendline nearby $24.20-40.
- XAG/USD Price Analysis: It’s upward biased, though downside risks remain below $25.00.
Silver price erased its earlier losses that dragged the white metal towards testing February 2 highs at $24.63 per ounce and rallied back above the $25.00 psychological figure. Although the US Dollar (USD) remained underpinned by high US Treasury bond yields, the XAG/USD is trading at $25.25, about to finish Wednesday’s session with gains of 0.28%.
XAG/USD Price Action
Since hitting YTD high at 26.08, the XAG/USD dropped sharply due to the overbought Relative Strength Index (RSI). Therefore, traders moved quickly to book profits, weakening Silver, which tumbled more than 5%. However, as oscillators turned neutral, the XAG/USD bottomed around $24.61, some 20-pips above the 20-day EMA.
For a bullish continuation, the XAG/USD must crack Wednesday’s high at $25.36. Once cleared, the XAG/USD next stop will be the April 17 daily high at $25.60 before posing a threat to $26.00, ahead of the YTD high at $26.08.
Conversely, the XAG/USD first support would be the psychological $25.00 level. A breakout to the downside will expose the 20-day EMA At $24.46, followed by a previously broken resistance-turned-support level at $24.20, as sellers brace towards $24,00. Once cleared, sellers will eye a test of the 50-day EMA at $23.45.
XAG/USD Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.