Technical Analysis: XAGUSD

XAGUSD hit a two-month low

On Tuesday, XAGUSD decreased by more than 4%. At one point, it hit US$64.35 per ounce, the lowest level since 23^rd March.

The expectation that the Fed will increase the interest rate rose

As US inflation climbed and the job market was resilient recently, the expectation that the Fed will increase the interest rate climbed. The probability that the Fed will raise the interest rate in December exceeded 70%, according to the CME’s Fed Watch.

Silver ETF holdings decreased

As of 9^th June, silver ETF holdings reached 15034.75 tons, a decrease of 26.73 tons from the previous day, according to the world’s largest sliver ETF--iShares Silver Trust.

The bearish market trend prevailed in the short term

the chart of the day

On the chart of the day, XAGUSD was prone to fluctuation and fell. The bearish market trend prevailed. 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 61.0. It will decline with potential support at 56.0 if it breaks below the support at 61.0. 

4-hour chart

On the 4-hour chart, XAGUSD was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, KDJ went upwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether XAGUSD will break through the resistance at 66.5. It will dip if it rebounds but is capped at 66.5.

Key resistance: 66.5,69.0

Key support: 61.0,56.0

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as XAGUSD rebounds during the day.