XAG/USD, the silver spot price has demonstrated remarkable resilience. Most importantly, it is still holding above the all-important 50-day Exponential Moving Average (EMA) — currently just over $32.50. This follows a close to 2% increase during the Asian trading day on Tuesday. Traders are fixedly focused on dynamics ablaze in the market. Price action on the silver daily chart Silver price is currently compressing into the apex of a symmetrical triangle pattern, indicating imminent breakout in either direction.
On Tuesday, XAG/USD held flat just below $32.50. This area is both historically significant and has been a powerful dynamic support zone. Today’s price action shows that market participants are cautiously optimistic, trying to balance positive economic news against potentially negative FOMC policy. At the moment, XAG/USD is building underneath a major descending trendline resistance, which is located near the psychological $33.00 mark.
The recent activity in XAG/USD indicates that it may be at an inflection point. A firm breakout over $33.00 might ignite some bullish momentum. Like this latest move, which could push prices up to the next resistance targets of $34.00 and then $35.00. If it falls below the psychological level at $31.00, then further losses may follow. It is hard to imagine this scenario not attracting significant new selling pressure and undermining the prevailing bullish thesis.
Independent market analysts have recently pointed out that the Relative Strength Index (RSI) for XAG/USD is presently 50.14. This stagnant figure indicates a balance point between the market’s inverse demand and supply forces. This neutral RSI indicates that traders might be looking out for further catalysts before positioning themselves for their next move.
The 200-day EMA for silver is currently located at $31.11, which adds additional weight to the $31.00 support level. Once prices drop below this psychological level, volatility is sure to increase dramatically. Such a turn would drive traders to increasingly bearish bets.