XAG/USD Analysis: Price Stabilises Below the Psychological Level
FXOpen
October proved exceptionally volatile for the silver market — the price broke past a historical record, climbing above $50. However, after widespread profit-taking, the market reversed downward.
XAG/USD is currently influenced by several factors:
→ prospects for Federal Reserve policy;
→ the easing of trade tensions between the United States and China;
→ the potential government shutdown and related news.
As indicated by the ATR indicator, volatility is declining — suggesting that supply and demand forces may be finding a balance.
Technical Analysis of the XAG/USD Chart
The broad upward channel remains intact, though it is worth noting that its median line has shifted from acting as support to serving as resistance.
From a bullish perspective:
→ the lower boundary of the channel acts as strong support;
→ the bullish A-B-C-D structure indicates that demand is recovering.
From a bearish perspective: if the silver price continues to rise, it will face resistance at:
→ the psychological $50 mark;
→ the 21 October drop zone, where selling pressure previously dominated.
Given the above, it is reasonable to assume that:
→ in the near term, the price may consolidate around the QL line;
→ if bearish momentum resumes, the alternative downward channel (shown in red) will gain relevance.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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