Silver Slips Below Channel Support, Eyes Further Downside.
XAG/USD appears exposed to further downside as it breaks below its ascending channel support.
FUNDAMENTAL OVERVIEW:
Silver (XAG/USD) remains under pressure during Friday’s Asian session, failing to build on its modest overnight rebound from near the $36.20 mark—a near four-week low. The metal is currently trading with a slight bearish bias around $36.60–$36.65, down 0.15% on the day, as traders await the U.S. Nonfarm Payrolls report.
Technically, the recent breakdown below the ascending channel and the 200-period SMA has turned the outlook bearish. Daily chart oscillators are picking up downside momentum, reinforcing the likelihood of further weakness.
However, oversold conditions reflected in the 4-hour RSI suggest the possibility of near-term consolidation or a mild recovery. Still, XAG/USD remains vulnerable to a decline below $36.20 and potentially toward $36.00 or $35.50 support.
On the upside, recovery attempts are likely to face resistance near the $37.00 psychological level. A sustained break above this could prompt short-covering toward the $37.55–$37.60 region—an important resistance zone. A clear move past this area would invalidate the bearish view and shift sentiment in Favor of the bulls.
XAG/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
XAG/USD is trading within an up channel.
XAG/USD is moving below 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 37.70
Immediate support level: 34.75
HOW TO TRADE XAG/USD
XAG/USD experienced an upward trend, but its rally stalled, leading to a reversal. The price has now breached a previous support level and is moving towards a crucial support zone. Traders will be watching this zone closely, as a successful bounce here could signal a renewal of the bullish trend.
