XAG/USD trades below $32.50 amid ongoing US elections
Silver (XAG/USD) price depreciated near $32.20 during the European session on Wednesday. The daily chart analysis suggests a potential shift in momentum from bullish to bearish, as the nine-day Exponential Moving Average (EMA) is aligning with the 14-day EMA. A downside crossover here would signal weakening near-term momentum.
Furthermore, the 14-day Relative Strength Index (RSI) is consolidating just below the 50 level, indicating an ongoing bearish bias. However, traders would want to see further moves to get a clear trend direction for the XAG/USD pair.
Furthermore, the Moving Average Convergence Divergence (MACD) line diverging below the signal line suggests potential bearish pressure on Silver price. Nonetheless, the overall trend remains bullish as the MACD line remains above the midline (zero line).
On the downside, Silver price may face immediate support at the psychological level of $32.00. A drop below this level could put downward pressure on the precious metal, potentially pushing prices towards the seven-week low of $30.12, recorded on October 8. In the event of a move up, Silver prices could target the nine- and 14-day EMAs at $32.83 and $32.84 respectively. A break above these EMAs could trigger a shift to a bullish bias, with the price potentially heading back towards the area near the all-time high of $34.87, reached on October 22.
Source: FXStreet
