Silver maintains its near-term bearish trend intact, with $35.50 support in danger.
US Dollar’s weakness is keeping the precious metal from retreating further.
XAG/USD: Below $35.50, the targets are $34.10 and $33.40.
Silver (XAG/USD) keeps trading back and forth without a clear bias, with technical indicators pointing to an increasing bearish momentum, and a key support area at $35.50, at a short distance.
Markets maintain the positive inertia from the fragile ceasefire in the Middle East. A moderate risk appetite keeps weighing on safe-haven assets, such as precious metals, with a broad-based US Dollar weakness keeping the pair from a deeper correction, at least for now.
Technical Analysis: XAG/USD remains supported by the neckline of a H&S formation
From a technical perspective, four-hour charts show a trend of lower highs and lower lows from Monday’s top, at $36.40, with the Relative Strength Index (RSI) treading lower, well within bearish levels.
The Doji candles on the daily chart indicate a hesitant market, and recent price action highlights a potential Head & Shoulders pattern, a common sign of an impending trend shift.
A break below the H&S neckline, at $35.50, would increase pressure towards $34.10 (June 4 low). The measured target of the H&S pattern is at $33.43.
On the upside, immediate resistance is at the mentioned $36.40 (June 23 high) ahead of the June 19 high at $36.82.
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