XAGUSD Sellers Attempt To Grab Hold Around the $26.00 Region

XAGUSD Price Analysis – July 18

Silver (XAGUSD) failed to break over a stiffer barrier ahead of the $26.40 region once more. On Friday, it dipped slightly lower and may remain depressed, with sellers now attempting to grab hold around the $26.00 region. The US dollar is gaining traction as a potential challenge to XAGUSD upside bias.

Key Levels
Resistance Levels: $27.50, $$26.75, $26.00
Support Levels: $25.50, $25.00, $24.50
XAGUSD Long term Trend: Ranging
Despite a retracement, XAGUSD has retained a strong grip above the ascending trendline as prices consolidate beneath the $26.75 resistance zone. On the upside, the round figure of $27.00 is still reachable. However, only a strong close above Friday’s high of $26.45 can herald more increases.

The pair may open with a downside bias in white metal. We expect Silver to drop to the $25.50 support band at the start of the new week if it fails to reclaim the $26.00 round number. The relative strength indicator is below its mid-line 50, indicating that the price may be weakening towards the $25.00 support level.
XAGUSD Short term Trend: Bearish
Technical analysis on the lower time frame shows that XAGUSD has broken into a bearish channel and may trade between the near-term resistance level of $26.00 and the short-term low of $25.50. Any such lower breakout will keep white metal selling towards the next support level of $25.00.

Above the $25.50 level, a recovery to the $26.00 level is possible. Silver may rebound from extremes and trade back around the $27.00s, but gains compared to the recent high of $26.77 are still possible. Short bets below $25.50 are most likely, with targets at $24.50 and $23.50 in extension.

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