Technical Analysis: XAGUSD

XAGUSD plunged by more than 2%

On Wednesday, XAGUSD was capped and declined. At one point it briefly came close to the US$32 mark. It ended down 2.12% at US$32.21 per ounce.

The USDX rebounded steadily

On Wednesday, as reports said that the US came close to reach an agreement on tariffs with Japan, Korea and India, the USDX rebounded steadily. It ended up 0.11% at 101.04.

Silver ETF holdings declined

As of the 14^th May, silver holdings decreased by 28.28 tons to 13971.47 tons, according to the data from the World’s largest Silver ETF--iShares Silver Trust.

Technically speaking, the bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAGUSD declined sharply yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing that XAGUSD will fall further. Investors should focus on whether XAGUSD will break through the support at 31.66. It will decline further with potential support at 30.90 if it breaks below 31.66.

4-hour chart

On the 4-hour chart, XAGUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the bearish market trend prevailed. Investors should focus on whether XAGUSD will break through the resistance at 32.50. It will fall if it rebounds but is capped at 32.50.

Key resistance: 32.50,33.00

Key support: 31.66,30.90

Generally speaking, XAGUSD is more likely to fall further. Investors should focus on US economic data during the day.