Silver (XAG/USD) price tumbles over 3.67% on Wednesday as investors increase Federal Reserve (Fed)-hawkish bets, following remarks by several officials supporting last week’s rate hike and penciling in further tightening. XAG/USD trades at $64.59, after reaching a high of $67.52.
XAG/USD Price Forecast: Technical Outlook
After forming a ‘head and shoulders’ chart pattern, which was later negated, the Silver price seems poised to consolidate in the $63.45-$67.50 range in the short term.
On the upside, the first key resistance is the 100-day Simple Moving Average (SMA) at $66.20, followed by $67.00. At the bottom of the range, the 50-day SMA at $63.45 is the first support, followed by $60.00.
The Relative Strength Index (RSI) indicates bearish momentum, with the index below its neutral level and in an almost vertical decline. Hence, in the short-term, XAG/USD is tilted to the downside.
Silver’s first support is the $64.00 mark. A breach of the latter will expose the 50-day SMA at $63.45, followed by the September 16 low of $62.30. On further weakness, the next key support levels are the March 23 low of $61.01 and the $60.00 milestone.
On the flip side, if XAG/USD reverses course and aims upward, the first resistance is the September 22 high of the day (HOD) at $67.55. A decisive breakout will expose the $70.00 mark, ahead of the August 28 swing high of $71.12.
XAG/USD Price Chart – Daily
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