The price of silver plunged after failing to approach and reach the 20.457 key resistance. XAG/USD dropped like a rock also because the USD rallied versus its rivals. When the greenback appreciates, the metals could slip lower. Fundamentally, the RBA raised the Cash Rate from 0.85% to 1.35% as expected. The Reserve Bank of Australia could take action in the next monetary policy meetings again as the inflationary pressure remains high. Later, the US Factory Orders indicator is expected to report a 0.5% growth and could bring more action on Silver.
Technically, the XAG/USD developed a minor Rising Wedge pattern signaling that the buyers are exhausted and that the rate could drop again. After its massive drop, Silver was expected to rebound. The throwback helped the sellers to go short again. Now, it challenges the 19,771 downside obstacle. Closing and stabilizing below this level could activate a larger drop towards the previous low.
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