Silver Drops Near $31.00 Post US Data Release
Silver (XAG/USD) prices extended its decline for the second session, trading around $30.90 per troy ounce during Asian hours on Friday (12/13). The daily chart analysis shows a shift in momentum to bearish from bullish bias as the pair has broken below an ascending channel pattern.
The XAG/USD pair is moving below the nine- and 14-day Exponential Moving Averages (EMAs), indicating a continued bearish outlook and signaling weakening near-term price momentum. This suggests increasing selling interest and increases the likelihood of further price depreciation.
Additionally, the 14-day Relative Strength Index (RSI) fell below the 50 mark, further confirming the emergence of a bearish bias. On the downside, the XAG/USD pair could move around the psychological level of $30.00, followed by the “throwback support” level at its three-month low of $29.65, recorded on November 28.
Immediate resistance emerges at the 14-day EMA at $31.18, followed by the nine-day EMA at $31.22. A break above these levels could see the bullish bias re-emerge and help Silver price move back into the ascending channel pattern.
A return to the channel would support the XAG/USD pair to retest its five-week high of $32.28, followed by the upper boundary of the ascending channel at $33.00.
Source: FXStreet
