Morning Market Update – XAG/USD

Silver continues to show its weakened outlook further, more decline is likely in the days ahead. Resistance comes in at the 17.40 level with a cut through here opening the door for more downwards momentum towards the 17.196 level. Further up, breaking the 17.40 level will expose the pair to testing the 17.465 level. Its daily momentum pointing lower suggests further upside pressure. Conversely, support lies at the 17.196 level where a violation will aim at the 17.124 level. A break here will aim at the 17.060 level. Its four hour chart clearly suggests that the pair is bearish and pointing lower supporting this view. All in all, silver faces further downside pressure on corrective pullback.

Strong resistance is giving indication that the pair may continue downward. The pair is likely to head still lower, way below the broken four-hourly support at 17.244. The pair is expected to face growing bearish pressures.

In the long term, the pair is still trading in range since the start of the week despite some turmoil. Key support can be found 17.244. The technical structure favours nonetheless a long term bearish bias.

Silver price achieved strong break through the 17.343 level and settled below it, turning its intraday track downwards, targeting to test the 17.124 areas in the upcoming period, supported by the negative pressure formed by the stochastic now which stays below the 50.0 level.

Therefore, the bearish bias will be suggested in the upcoming sessions unless the price managed to rally bullishly to breach 17.400 levels and hold above them.

Four-hourly resistance holds the area at a distance at 17.409 while resistance now continues to hold and rejected with recent candles the decline is expected to show continued short term bearish move.

Expected trading range for today is between 17.242 support and 17.479 resistance.

Expected trend for today: Bearish
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