XAGUSD Mounts a Surprise Rebound to the Vicinity of $24.00

XAGUSD Price Analysis – August 23

After plunging to lows of $22.87 at the beginning of the prior week, XAGUSD pulled off stunning comebacks to close at $24.02. In a risk-off environment, the US dollar has softened, pushing silver to an extended region. Coupled with significant macroeconomic data releases from the US, the latest COVID wave is anticipated to cause some slowing.

Key Levels
Resistancw Levels: $25.50, $25.00, $24.50
Support Levels: $22.87, $21.89, $20.65
XAGUSD Long term Trend: Ranging
XAGUSD has risen beyond the psychological $24.00 level and in the coming session may continuing to gain upward momentum. Silver has a fair probability of returning towards the bullish region between $25.00 and $27.00.

On the support side, the horizontal support level at the $23.50 level confluence zone is the immediate support level for silver. For silver bulls, a move below the confluence zone will be a struggle since it will indicate that silver is losing momentum. In this event, silver will fall to $22.87, which is a tested support level.
XAGUSD Short term Trend: Ranging
The short-term oscillators on the 4-hour chart also imply increased positive momentum as the RSI remains into the bullish zone, perhaps enhancing the good outlook in price despite trading at the bottom of the chart.

On the downside, the $23.50 level, a close support area, may provide some support, but a breach at this point is unlikely to draw much notice unless the price falls below the strong support of the lower tested zone, which is currently at $22.87.

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