Silver Price Forecast: XAG/USD faces rejection near descending channel hurdle, around $33.00

FXStreet
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  • Silver dives to over one-week low on Monday amid the optimism over the US-China trade deal.

  • The mixed technical setup warrants caution for bears and before positioning for further losses.

  • A sustained strength beyond the $33.00 mark will set the stage for additional near-term gains.


Silver (XAG/USD) attracts heavy intraday selling in the vicinity of the $33.00 round figure and dives to over a one-week trough during the first half of the European session on Monday. The white metal, however, shows some resilience below the $32.00 mark and currently trades around the $32.25 region, still down over 1.25% for the day.


From a technical perspective, the XAG/USD once again faced rejection near a resistance marked by the top boundary of a short-term descending channel. Moreover, oscillators on daily/hourly charts have started gaining negative traction and support prospects for a further depreciating move. However, the said channel constitutes the formation of a bullish flag pattern against the backdrop of the recent goodish recovery from the $28.45 area, or the year-to-date trough touched in April.


The aforementioned mixed setup warrants some caution for bearish traders and suggests that any subsequent fall is more likely to attract some dip-buyers near the $31.70 region, or the monthly low. This, in turn, should help limit the downside near the descending channel support, currently pegged just ahead of the $31.00 mark. A convincing break below the latter, however, will be seen as a fresh trigger for bearish traders and pave the way for some meaningful downfall in the near term.


On the flip side, the $32.65 area now seems to act as an immediate barrier ahead of the $33.00 mark, or the descending channel hurdle. A sustained strength beyond will confirm a fresh breakout and allow the XAG/USD to accelerate the move higher towards the $33.70 intermediate hurdle before aiming to reclaim the $34.00 mark.


Silver 4-hour chart



* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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