Silver (XAGUSD) Drops As USD Strengthens on Risk-Off Market Tone

XAGUSD Price Analysis – November 21

At the time of writing, Silver (XAGUSD) ended the prior session in the red, down about 1%, at the $24.55 level. In the equity markets on Friday, there was a risk-off market tone which strengthens the greenback. The pair may remain distressed under the $25.00 barrier in the new week, as the US dollar gains strength.

Key Levels
Resistance Levels: $26.00, $25.50, $25.00
Support Levels: $24.50, $24.00, $23.50
XAGUSD Long term Trend: Ranging
As the market is seen to challenge the near-term horizontal support zone now at the $24.50 level, XAGUSD sellers have regained medium-term dominance. The ascending trendline support, which may operate as a backstop, lies beneath the $24.00 level, making it a good base for the bears.

On growing USD strength, the white metal has fallen from the resistance around the moving average 5 hurdle, and a break below the $24.50 level might lead to a test of the horizontal support zone at the $24.00 level. The daily Relative Strength Index (RSI) is heading south, indicating that more negative correction is possible.
XAGUSD Short term Trend: Ranging
The XAGUSD was last spotted languishing at $24.62 on the upper channel of its 4-hour chart. Meanwhile, technical indications on the 4-hour chart have been trending downward, indicating that further weakness is likely. However, the short-term RSI’s possible rebound should be viewed with caution before setting for a further decline.

A strong break below the horizontal support at $24.50 could lead to a lower mark at $24.00. The next upside objective, on the other hand, is at the $25.00 level. Near-term important support is found at $24.00, which acts as a stopgap for an additional silver decline towards the monthly low of $23.02.

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