- Currently, silver is priced at around $36.50, reflecting a drop of over 4.5% this week after peaking at $39.53 on July 23, its highest point since 2014.
- The prices have dipped below the support levels of previously ascending channels, indicating a loss of momentum and signaling a potential weekly decline, the largest since March.
- The market is anticipating the release of the US Non-Agricultural Payroll (NFP) report on Friday at 12:30 GMT for further direction.
Silver (XAG/USD) has continued its decline from the July 23 peak of $39.53, now trading close to $36.50 during the US trading session, down by nearly 4.5% this week. There’s a sense of caution among traders ahead of the major payroll report on Friday.
From a technical standpoint, the daily chart indicates that silver has broken below the uptrend support established in early April, suggesting a possible shift in market dynamics. This break raises concerns about waning bullish momentum and the likelihood of deeper corrections ahead. Currently, the metal is sitting at $36.54, just above the 50-day exponential moving average (EMA), which acts as immediate support. If daily closes fall below this level, the next significant support could be around $34.65 according to the 100-day Simple Moving Average (SMA).
Indicators are painting a bearish picture. On the daily chart, the relative strength index (RSI) has dropped to 40, signaling weakening momentum and edging toward oversold territory. Additionally, the MACD has turned negative, with bearish crossovers appearing, suggesting a risk of further declines.
Shifting attention to the 4-hour chart, silver has slipped below both the 50-EMA and 100-SMA, underscoring persistent short-term selling pressure. Prices are nearing a key demand zone between $35.30 and $35.70, which could offer some short-term support. However, a rebound is possible since the four-hour RSI has fallen to a level considered oversold, around 21. Nonetheless, MACD remains solidly negative, implying that the overall sentiment is tilted toward further declines.
