silver price
Silver is currently trading lower on the day as tepid Chinese PMI data continue to weigh on commodities in Monday trading. XAGUSD is now trading at $17.13, and is dutifully approaching the key support level at $16.94.
However, the daily candle needs to close the day with a 3% penetration below the support formed by the highs of April 19, June 14 and August 14 to be able to touch off 16.94 successfully.
Download our Gold Prices Q4 Outlook Today!
[vc_single_image image=”14654″ img_size=”medium” alignment=”center” style=”vc_box_rounded” >
The daily chart presents the near-term view for XAGUSD and shows that the present downside move is a pullback to the consolidation region that has 15.50 as the floor and 17.50 as the ceiling.
The immediate support lies at 16.94 and below this level, 16.28 (61.8% Fibonacci level of a trace from May 26 swing low to Sept 1 swing high). The 16.28 price level is also the site at which XAGUSD made its Q1/Q2 2018 lows. A break of immediate support at 16.94 will bring this level into focus.
On the flip side, a failed attempt to break 16.94 could reopen the door for another test of 17.60. A break above this level would invalidate further downside sentiment and the highs of Feb 2017 and August 25 would then be the next upside target.