Silver price hits a four-week high at $24.52 but retraces to $24.26.
For bullish continuation, XAG/USD must breach $24.49 resistance, opening the path to $25.00 per troy ounce.
XAG/USD’s failure to crack $24.49 could lead to further losses, with potential dips to $24.01 and $23.63.
Silver price reaches a new four-week high but retraces from those levels to finish the day, forming a gravestone doji, suggesting neither buyers nor sellers win the battle, which would continue into the following week. Therefore, the XAG/USD finished the week trading at $24.26 after hitting a daily high of $24.52.
XAG/USD Price Analysis: Technical outlook
The XAG/USD daily chart portrays the pair as neutral-biased in the near term. Although the daily EMAs sit beneath Silver’s spot price, XAG/USD’s failure to break market structure above the April 25 low turned resistance at $24.49 would likely keep Silver’s price depressed. Nevertheless, real news like the Federal Reserve (Fed) monetary policy decision on Wednesday could give direction after printing a doji on the latest day of the week.
For a bullish continuation, XAG/USD must reclaim $24.49, which could put into play the $25.00 figure per troy ounce in play. A breach of the latter will expose the May 11 high at $25.47 before challenging May 10 daily high at $25.91.
XAG/USD’s failure to break $24.49 could pave the way for further losses. The XAG/USD could dive towards the June 2 daily high at $24.01, followed by the June 8 low at $23.63, ahead of dropping toward $23.50.
XAG/USD Price Action – Daily chart