Silver Price: XAGUSD Edges Higher Past $27.00 Level As USD Strength Dwindles

XAGUSD Price Analysis – December 21

Silver (XAG/USD) prices are on the move this week as the white metal breaks out from its recent range. Following its price action from the $25.80 opening price, XAGUSD has posted a recent high of $27.41 during the European session. USD’s rally during the European morning session was suppressed by USD sellers eager to secure a bargain and DXY is now trading back lower.

Key Levels
Resistance Levels: $30.00, $28.90, $27.50
Support Levels: $26.00, $24.50, $23.50
XAGUSD Long term Trend: Bullish
XAGUSD price has convincingly broken to the upside of its range and the main resistance level to watch out for is the $27.50 that has capped its upside since 15th September. To the downside, the previous top of the old December range at around $24.86 level ought to offer immediate support, in case of an unexpected decline.

Alternately, if the $27.50 level gives way then silver prices could be looking towards posting further gains in the medium to long term. Price action has been broadly consolidating near the $26.00 levels over the past few sessions. If it does break above, a gradual move towards the mid-September highs above the $27.50 level will be likely.
XAGUSD Short term Trend: Bullish
As seen on the 4-hour chart, silver appears to be launching toward a major technical barrier at the $27.50 level. In the event, the barrier holds intact XAGUSD is likely to gain support from 4 hours moving average 13 near the $26.00 level and return to extend gains against the US Dollar in the short term.

A possible upside target is the upside range at $28.90 and $30.00 levels, in the meantime, it is unlikely that bears could prevail in the market. That said, a sustained break below will be seen as the first signs of bullish exhaustion and turn the pair vulnerable to fall further towards challenging the key $24.50 psychological mark.

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