- Silver is posting modest gains after closing in the red for three days.
- Price could struggle to rive above $25.50 hurdle in the near term.
After closing the previous three trading days in the negative territory, the XAG/USD pair staged a rebound on Tuesday and was last seen gaining 0.71% on the day at $24.45.
In the absence of significant fundamental drivers, this move seems to be a product of broad-based USD weakness and the technical picture remains neutral in the near-term. The Relative Strength Index (RSI) on XAG/USD’s daily chart stays relatively flat near 50, confirming the pair’s indecisiveness.
On the downside, the 20-day SMA seems to have formed a support for XAG/USD at $24.25. With a daily close below that level, the pair could extend its slide toward the 100-day SMA at $23.35 ahead of $23 (psychological level/Fibonacci 38.2% retracement of March-August uptrend).
Resistances, on the other hand, align at $25 (psychological level) and $25.50 (50-day SMA/Fibonacci 23.6% retracement). Unless XAG/USD makes a daily close above the latter, bulls could struggle to take control of the price.
XAG/USD daily chart
Additional technical levels to consider
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