XAG/USD: the price is consolidating near 25.00
Current trend
Silver prices show a moderate decline during the Asian session, correcting after a fairly strong increase the day before on the back of lower yields and risk aversion in financial markets. However, the USD Index is rising for the second day in a row, renewing an intraday high around 98.800, adding 0.14%. XAG/USD is again testing 25.00 for a breakdown; however, there are not so many drivers for the development of the "bearish" trend.
The "hawkish" rhetoric of the US Federal Reserve had only a brief downward effect on safe-haven assets, after which the demand for silver, gold and a number of other trading instruments began to recover again. Traders are concerned about the uncertainty posed by the conflict in Eastern Europe ahead of US President Biden's meeting with his North Atlantic Treaty Organization (NATO) allies in Brussels. The special military operation carried out by Russian troops in Ukraine has been going on for a month already, while it is still premature to talk about the prospects for its completion. The peace talks, which continue to this day, have not led to any clear results due to the cardinal contradictions in the positions of the parties.
At the end of the week, investors expect an emergency EU summit to consider new sanctions against the Russian economy. The focus will be on the issue of a possible embargo on energy supplies from the Russian Federation to the EU countries. In addition, according to US Senator John Cornyn, he met with US Treasury Secretary Janet Yellen to discuss sanctions on Russian gold.
Support and resistance
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic is showing oscillatory dynamics and is located in the middle of its area. Current technical indicators remain uninformative.
Resistance levels: 25.35, 25.58, 26.00, 26.27.
Support levels: 25.00, 24.67, 24.42, 24.00.
Silver prices show a moderate decline during the Asian session, correcting after a fairly strong increase the day before on the back of lower yields and risk aversion in financial markets. However, the USD Index is rising for the second day in a row, renewing an intraday high around 98.800, adding 0.14%. XAG/USD is again testing 25.00 for a breakdown; however, there are not so many drivers for the development of the "bearish" trend.
The "hawkish" rhetoric of the US Federal Reserve had only a brief downward effect on safe-haven assets, after which the demand for silver, gold and a number of other trading instruments began to recover again. Traders are concerned about the uncertainty posed by the conflict in Eastern Europe ahead of US President Biden's meeting with his North Atlantic Treaty Organization (NATO) allies in Brussels. The special military operation carried out by Russian troops in Ukraine has been going on for a month already, while it is still premature to talk about the prospects for its completion. The peace talks, which continue to this day, have not led to any clear results due to the cardinal contradictions in the positions of the parties.
At the end of the week, investors expect an emergency EU summit to consider new sanctions against the Russian economy. The focus will be on the issue of a possible embargo on energy supplies from the Russian Federation to the EU countries. In addition, according to US Senator John Cornyn, he met with US Treasury Secretary Janet Yellen to discuss sanctions on Russian gold.
Support and resistance
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic is showing oscillatory dynamics and is located in the middle of its area. Current technical indicators remain uninformative.
Resistance levels: 25.35, 25.58, 26.00, 26.27.
Support levels: 25.00, 24.67, 24.42, 24.00.
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