Silver Price: XAGUSD Move Offers Ahead of the Barrier at $18.20 Level As USD Weakens Amid Easing US-China Tensions

Silver Price: XAGUSD Move Offers Ahead of the Barrier at $18.20 Level As USD Weakens Amid Easing US-China Tensions

XAGUSD Price Analysis – June 1

Silver hits the highest ever since the end of February whilst pushing offers past the $18.20 level, hitting an intraday high of $18.38 level, up 1.85 percent in 24 hours, during Monday’s European session. In the aftermath of US-China trade war relief and escalating U.S. protests, the continuation of last week’s rally in the white metal is driven primarily by the sell-off in the U.S. dollar across the board.

Key Levels
Resistance Levels: $19.72, $18.94, $18.20
Support Levels: $17.63, $16.72, $15.84

XAGUSD Long term Trend: Bullish
Combing through the daily chart, upside bias remains unchanged, though overbought RSI conditions seem to question the bulls, bullish moving average 5 and 13, and the bullion’s ability to stay beyond barriers at $18.20 level hold more weight of its dominance.

The pair is supposed to find support at $17.63 level, and a decline through could lead it to the next at $17.25 support level. The pair is supposed to find its initial resistance at $18.94 level, and a surge through could take it to the next $19.72 resistance level.

XAGUSD Short term Trend: Bullish
On the 4-hour time frame, recently attracted buyers at $17.00 level as a result of an upward sloping trend line from low as of 14 May. However, the inability to pull away from the short-term horizontal resistance-line at $18.20 level may further push the pair to the next resistance level at $18.94 as seen on the daily.

Whereas, during the pullback of May 20 high near $17.63 level may encourage sellers till moving average 5 and 13 zones beneath $17.25 level. Additionally, a $16.72 level 61.8 percent retraction of the metal’s fall from September 2019 to March 2020 could then confront the bears.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.