Silver Price: Price Rebound Loses Steam on XAGUSD Near $26.50 Level

XAGUSD Price Analysis – August 12

Silver prices remain under pressure after bouncing down from $23.44 to $26.28 levels, up 3.5 percent a day, during Wednesday’s European session. The price bounce on XAGUSD loses momentum close to $26.50 level. The price of the precious metal dropped sharply as investors made profits in a bond yield rally.

Key Levels
Resistance Levels: $30.00, $29.27, $27.37
Support Levels: $23.25, $21.38, $20.43
XAGUSD Long term trend: Bullish
The price of silver currently sits between levels of $24.81 and $26.28, just beneath the recent high of $29.85 level. In a scenario where the metal plummets underneath the level of $23.25, a 4-year high near the level of $21.38 may deliver a transient halt until the $20.43 psychological threshold is acknowledged.

Daily, fresh buying is less likely to occur until the quote recovers at $26.50 level, beyond the support-turned-resistance line. Nevertheless, a daily close beneath the $25.75 level moving average of 13 is essential for the sellers to reach $23.25 level and July 28 low near $22.30 level.
XAGUSD Short term Trend: Ranging
The Relative Strength Index (RSI) of 4 hours has recovered but persists beneath midline 50, in the bearish territory, indicating that the bears are likely to attempt to expand dominance over the coming hours. Yesterday the exchange rate of XAGUSD had been rapidly falling in price. The price reversed north from the $23.44 level through Wednesday morning.

The white metal may maintain its support at $23.78 level from the horizontal support level and rebound in the short run. Nevertheless, due to the resistance of the 4 hour moving average of 13, it is unlikely that the silver price may surpass the $27.37 mark.

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