Silver Price: XAGUSD Sustains Sideways Run Above $26.00 Ahead of Key US Data

XAGUSD Price Analysis – March 21

The prior week’s price action has confirmed Silver (XAG) to be constrained within a sideways run within and above the $26.00 zone. The XAGUSD pair is attempting to safeguard its gains after its rebound from the Mar. 5 lows at $24.83 levels. In the new week, the Silver market will react to key data, preliminary Markit PMI report for March from the United States.

Key Levels
Resistance Levels: $30.00, $28.50, $27.50
Support Levels: $25.00, $24.00, $23.50
XAGUSD Long term Trend: Ranging
In the prior week, XAGUSD bulls attempted to crush the old barrier around the $26.77 zone but retreated beneath the $26.00 level. As a result, the quote’s further upside may be challenged by a psychological horizontal line at the $27.50 level. The RSI is also in a sideways territory around 50, so a rebound is not out of the question. The $26.77 acts as an initial barrier.

Alternatively, Silver (XAG) may attempt the immediate support line, which is currently around the weekly low at $25.38 level, and may take silver prices towards the low level at $25.00. However, any further weakness needs to break the yearly low of $24.01 to invalidate the XAGUSD bullish run-up.
XAGUSD Short term Trend: Ranging
On the 4-hour time frame, the bulls may wait for a further pullback to the $26.00 level to enter the upside market, which is around the prior week’s high at $26.63 level. Below the ascending trendline support is the $25.00 level (which is also near the lows of March). The first resistance is at the 27.50 level, then the Feb. 22 highs at $28.32.

If the price breaks above there, the high at $28.90 is the next focus for the bulls & extension from there may attempt the yearly highs at the $30.13 level. Thus, some upside potential could prevail in the market during subsequent sessions. XAGUSD may continue moving in a sideways pattern until anticipated fundamentals coming from the united states are released this week.

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