Silver (XAG/USD) tumbles over 3% on Monday as the US Dollar rises on safe-haven demand amid escalating US-Iran tensions in the Strait of Hormuz, as the US Navy embarks on Donald Trump’s 'Operation Freedom'. At the time of writing, XAG/USD trades at $72.74 after reaching a high of $76.00.
XAG/USD Price Analysis: Technical outlook
After extending its gains last Friday, XAG/USD erased those gains, forming a ‘bearish engulfing’ chart pattern, which, once confirmed, would open the door for further downside.
Momentum, as measured by the Relative Strength Index (RSI), is bearish, leaving bullish traders exposed to further losses if Silver dips below the latest cycle low of $70.86, the April 20 swing low. If surpassed, the next stop would be the $70.00 milestone, followed by the April’s month low of $68.28.
Looking upwards, XAG’s buyers must clear the $73.00 mark if they want to remain hopeful of higher prices. Once hurdled, the next stop would be the May 4 high of $76.98, followed by the $78.00.
XAG/USD Price Chart – Daily
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