XAGUSD Price Analysis – August 26
Silver traders fail to extend the late-US session recovery moves from $26.06 level beyond $26.80 level as the quote drops on sellers attempt at $26.00 mark during the early Wednesday European session. The XAGUSD prices pullback after rally upwards guided by an ascending trend line since the end of July.
Key Levels
Resistance Levels: $29.50, $28.15, $27.37
Support Levels: $25.00, $23.78, $21.38
XAGUSD Long term Trend: Bullish
XAGUSD continues its expected consolidation following the move towards $26.15 level with base case objective of $26.00 level. Although we continue to see the core long-term trend higher, reinforced by falling US dollar, there is scope for a more protracted consolidation phase to unfold first.
At present, the bias remains for a cluster of supports at $26.20-$25.00 levels to ideally hold further weakness, which includes the retracement of the rally from the March low level. Should weakness extend, we would see scope for a deeper setback to $23.78 level, potentially $23.25 level.
XAGUSD Short term Trend: Ranging
On the 4-hour time frame, It is worth noting that RSI is trading beneath its midlines after reaching extreme levels adding weight to the view for a lengthier pause in the bull trend. Post this phase we look for an eventual move above $26.50 level in the short run with resistance seen next at $27.15 level, then $27.37 level.
Whilst we would look for a fresh consolidation at this latter level, a direct break lower can see potential trend support at $25.75 level reached, with scope seen for $25.00 level over the shorter-term.
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