Current trend

This week, the XAG/USD pair tried to break the support level of 26.58 but after the results of yesterday’s the US Fed meeting, the quotes began to rise.

As expected, regulator officials kept the interest rate at 5.50%, as the rate of decline in inflation in the country has slowed significantly. In turn, the head of the department, Jerome Powell, during his speech ruled out an increase in borrowing costs, announced a balance correction from 60.0B dollars to 25.0B dollars per month and was generally less “hawkish” than the market expected, which supported assets, alternative to the dollar.

The correction in the silver contract market continues: last week, data from the US Commodity Futures Trading Commission (CFTC) reflected an increase in the number of net speculative positions in the metal from 53.4K to 59.3K. As for the dynamics, the “bulls” maintain advantage, however, it will take some time to realize the gained position: according to the report on contracts backed by real money, their balance is 59.902K versus 19.947K for the “bears”. Last week, buyers closed 0.582K transactions, while sellers increased their number by 0.425K, which reflects the fixation of some positions.

In the long term, the XAG/USD pair maintains an upward trend: since mid-April, the price has been trading within a downward correction, reaching the support level of 26.58, where long positions with the target at the resistance level of 27.85 and of 29.44 have become relevant. If the support level of 25.67 is broken, a decline to 25.67 is expected.

The medium-term trend is downward: last week, the price crossed the zone 27.89–27.70 and headed towards zone 2 (25.79–25.58), and after breakdown, the next target will be zone 3 (23.69–23.48). In the event of a correction to the trend border of 28.54–28.33, short positions with the first target at the current week’s low of 26.27 are relevant.

Support and resistance

Resistance levels: 27.85, 29.44.

Support levels: 26.58, 25.67, 24.83.

Trading tips

Long positions may be opened from 26.50, with the target at 27.85 and stop loss 26.05. Implementation time: 9–12 days.

Short positions may be opened below 26.05, with the target at 24.83 and stop loss 26.58.