Silver Price: XAGUSD Stays on the Back Foot After Downside Attempt Towards Sub $27.00 Levels

XAGUSD Price Analysis – September 7

Silver drops to $26.62 level, down 0.46% on a day, during Monday’s initial trading session. The white metal maintains its downside break of nearly a month old while searching for fresh traction. As a result, sellers’ eyes further weakness towards the round figure of $26.00 level.

Key Levels
Resistance Levels: $30.00, $28.90, $27.15
Support Levels: $26.50, $25.00, $23.78
XAGUSD Long term Trend: Bullish
XAGUSD has maintained a firm grip near the moving average 13, with prices consolidating near the $27.15 resistance level. To the upside, the resistance level near $27.13 level remains within reach. But only a strong close above this level will mark further gains.

This opens the downside bias in the white metal. If Silver loses the $26.50 handle, then we expect a move down to the $26.20 level of support. The relative strength index is at its midlines, and this might signal a rebound near the $26.50 level of support.
XAGUSD Short term Trend: Ranging
Silver has been appreciating against the US Dollar since mid-August within a rising wedge pattern. From a theoretical point of view, a breakout south could likely occur within the following trading sessions.

In this case, the XAGUSD exchange rate maintains support from the horizontal level at $26.50 level. Thus, the silver price could continue to go upwards. Note that the rate could face the resistance from the monthly R1 and R2, located at $28.15 and $28.90 levels respectively.

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