Silver Price Analysis: Bulls To Defend The $26 Support LevelSilver began the day with strong gains during the European trading session but soon turned bearish after the US Dollar began its rally.
Silver was performing excellently during the European market, reaching a daily high above $26.70. However, it has slipped below the $26.30 mark, and the bulls are now forced to defend the next support level at $26.0.
Silver’s Early Gains Erased
The XAG/USD pair opened the day trading at $26.486. However, the precious metal continued its recent strong rebound from the vicinity of mid-$25.00s and rallied towards the $27.00 mark. It reached an intraday high of $26.774, the first time the commodity reached that level in three weeks.
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Silver’s technical indicators showed that its rally past the $26.30 supply region or the 50% Fibonacci level of the $23.78-$28.75 was a trigger for the bullish traders. The bulls pushed the XAG/USD pair above the 38.2% Fibonacci Level during the European trading session today.
However, Silver couldn’t gather enough momentum to push it past the $27.00 region. This allowed the bears to wipe out the gains recorded earlier today, with the US Dollar performing excellently over the past few hours. The Greenback’s strong performance has pushed Silver into bearish territory, and it hit an intraday low of $26.011.
Bulls Forced To Defend The $26.00 Support Level
With the US Dollar coming out strong earlier today, the bulls were forced to defend the $26.00 support level or risk recording further losses. At the time of this analysis, XAG has slightly recovered and is trading at $26.178.
The market bulls still have work to do if XAG is to go back to its previous level above $26.70. Failure to mount a serious challenge could lead to a sell-off and a decline towards the mid-$25.00s, which will confirm a bearish break. A bearish trend could drag the XAG/USD back towards supporting the key $25.00 psychological mark.