Silver Price: XAGUSD Path of Least Resistance Stays to the Downside

XAGUSD Price Analysis – August 31

Having initially surged to the highest since August 18, Silver prices recede to $27.87 level during Monday’s early European session. Even so, the white metal flashes 1.30% gains while rising for the second day in a row. However, Silver’s downside appears more compelling in the absence of long term buyers, as the XAGUSD path of least resistance stays to the downside.

Key Levels
Resistance Levels: $30.00, $29.50, $28.15
Support Levels: $27.15, $26.50, $25.00
XAGUSD Long term Trend: Bullish
At press time, the spot is trading well above the bullish MA 5 and MA 13 at $27.84 level, looking to retest the horizontal trendline resistance placed at the $28.15 level. As a result, the bulls may wait for a clear break of the mid-August peak around $28.50 level for fresh entries. In doing so, the current monthly high near $29.85 and $30.00 levels will be on their radars.

Meanwhile, a downside break of the MA 5 and MA 13 levels of $27.00 region can trigger the quote’s fresh declines targeting the previous week’s low around $26.00 level. Sellers will then target a low level of $25.00 level should the downside pressure intensify.
XAGUSD Short term Trend: Ranging
From a short-term technical perspective, the white metal fell as low as $27.57 level during the European trades, piercing through the Moving Average 5, then at $27.80 level as it approaches the Moving Average 13 at $27.50 zone.

The pair is supposed to find support at the level of $27.15, and a plunge over could take it to the next level of $26.50. The pair is supposed to meet its initial resistance at the level of $28.15, and a spike out could push it to the next level of resistance of $29.50.

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