Technical Analysis: XAGUSD

XAGUSD decreased by more than 2%

On Tuesday, XAGUSD decreased by more than 2% and reached US$28.83 per ounce, which marked the lowest level since the 14^th June.

Officials at the Fed made hawkish statements

The Fed member Bowman said on Tuesday that the Fed will not cut the interest rate in 2024 and will postpone the interest rate reduction to 2025. The Fed has been cutting the inflation growth, however, if the progress stalls, the Fed will be ready to increase the interest rate, he added.

Silver ETF holdings fell

As of the 25^th June, silver ETF holdings reached 13628.88 tons, down 78.12 tons from the previous trading day, according to the data from the ETF——iShares Silver Trust.

Technically speaking, the bearish market trend prevailed

the Chart of the Day

On the chart of the day, XAGUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing XAGUSD will fall further. Investors should focus on whether XAGUSD will break through the support at 28.65. It will decline further with potential support at 27.95 if it breaks below 28.65.

4-hour chart

On the 4-hour chart, XAGUSD fluctuated and fell. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing the market trend is bearish. Investors should focus on whether XAGUSD will break through the resistance at 29.34. It will decline further if it rebounds but is capped at 29.34.

Key resistance: 29.34, 29.72

Key support: 28.65, 27.95

Generally speaking, lowered by negative factors, XAGUSD is more likely to fall further in the short term. Investors should focus on US economic data during the day.