Silver prices experienced a significant decline of more than 2% on Thursday, reflecting the release of positive economic data from the United States, which suggests that business activity is thriving despite the backdrop of a high-interest-rate economy. At the time of reporting, the XAG/USD pair is trading at $30.10, marking a decrease of 2.18%.
Technical analysis of XAG/USD indicates the following outlook:
Silver’s upward trend remains intact, but the rapid and vigorous movement has prompted a mean reversion. The momentum from buyers is waning, as evidenced by the Relative Strength Index (RSI) dropping below the 70.00 level and aiming toward the 50-midline. This suggests an increasing control by sellers in the market.
In light of this analysis, the first support level for XAG/USD is anticipated to be the psychological level of $30.00. In the event of further weakness, subsequent support levels include the April 12 high, now serving as support, at $29.79, followed by $29.00. Additional significant support levels consist of the May 18, 2021, high at $28.74, and the June 10, 2021, high at $28.28.
