Technical Analysis: XAGUSD

XAGUSD reached a record high again

On Wednesday, XAGUSD increased by about 2%. At one point, it came close to the US$62 mark, reaching a record high again.

The Fed cut the interest rate by 25 basis points

On Wednesday, local time, the Fed cut the federal fund interest rate target range by 25 basis points to 3.50%-3.75%, meeting market expectations. It reduced the interest rate for the third time this year. However, three officials voted against the interest rate reduction.

Silver ETF holdings increased

As of 10^th December, silver ETF holdings increased by 110 tons to 16083.16 tons, according to the data from the World’s largest Silver ETF--iShares Silver Trust.

The bullish market trend prevailed

the Chart of the Day

On the chart of the day, XAGUSD continued rising. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that XAGUSD will climb further. Investors should focus on whether XAGUSD will break through the resistance at 63.5. It will jump with potential resistance at 65.0 if it breaks above 63.5.

4-hour chart

On the 4-hour chart, XAGUSD was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, RSI went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether XAGUSD will break through the support at 61.6. It will climb if it retreats but is stable above 61.6.

Key resistance: 63.5,65.0

Key support: 61.6,60.0

Generally speaking, the bullish market trend prevailed in the short term. Investors should focus on US economic data during the day.