Silver (XAG/USD) trades lower for the second consecutive day on Wednesday, exploring prices below the $63.00 level at the time of writing, after a reversal from the $66.50 area on Tuesday. Precious metals are struggling as markets turn cautious amid the deterioration in the Middle East crisis, with oil prices consolidating at higher levels.
The Memorandum of Understanding between the US and Iran expired on Monday, and US President Donald Trump confirmed on Tuesday that there are no talks with Tehran at the moment. Sea traffic through the Strait of Hormuz, meanwhile, remains limited to a trickle, which keeps Oil prices on the rise, with Brent Oil at $90 after rallying about 6% over the last three days.
Technical Analysis: Bears are pushing against the $63.30 support area
XAG/USD trades at $63.09, with bears pressing against the support area near the $63.30 level, which is the floor of last week's trading range and a previous resistance area. Intra-day momentum indicators endorse the bearish view, with the 4-hour Relative Strength Index (14) retreating toward the mid-30s, and the Moving Average Convergence Divergence (MACD) treading deeper into negative territory.
A confirmation below the mentioned $63.30 area would shift the focus towards the August 6 low at the $60.90 area, ahead of the late July and early August lows, in the mid-range of the $56.00s.
On the topside, if the pair manages to hold above $60.30, bulls might regain confidence to launch another attack to the resistance area around $67.00 (June 22, August 12 highs) ahead of a key resistance zone between mid-June highs, in the $71.55 area, and the 200-day Simple Moving Average (SMA) at $71.85.
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