Silver Struggles to Rise on Negatif Levels
Silver (XAG/USD) witnessed heavy intraday selling around the $33.00 round-figure mark and declined for more than a week during the first half of the European session on Monday. However, the white metal showed some resilience below the $32.00 mark and is currently trading around the $32.25 region, still down over 1.25% for the day.
On the technical front, XAG/USD once again faced rejection near a resistance marked by the upper boundary of a short-term descending channel. Moreover, oscillators on the daily/hourly charts have started gaining negative traction and support prospects for a further depreciating move. However, the area constitutes the formation of a bullish flag pattern against the backdrop of the recent goodish recovery from the $28.45 region, or YTD troughs touched in April.
Traders are currently bearish and suggest that any subsequent decline is likely to attract some buyers who take some buying action near the $31.70 region, or monthly lows. This, in turn, should help limit the downside near the descending channel support, currently pegged just above the $31.00 level. However, a convincing break below the said level will be seen as a fresh trigger for bearish traders and pave the way for some meaningful decline in the near term.
Source: FXStreet
