Baxia Markets
March 13, 2024

Bearish Undertones in Silver Market: Understanding XAGUSD's Current State

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Silver (XAGUSD) encountered substantial volatility, with a range of over 60 pips or 2.75% in the previous session. This surge in volatility led to the expansion of Bollinger bands. Despite the uptick, prices breached the lower band, signaling a bearish sentiment. Currently, the market retraces, trading sideways and testing the mid band of the Bollinger bands. Resistance may emerge near this midline.

Bearish Undertones in Silver Market: Understanding XAGUSD's Current State
EMA 50, although positioned above EMA 200, exhibits a bending pattern towards the latter. This suggests a weakening bullish sentiment, with prices hovering between the two EMAs, possibly finding support at EMA 200.

Within the volume profile indicator, prices remain within the value area, indicating a lack of clear bearish trend until a breach below the value area's low at $24.00 occurs.

Both MACD and RSI indicators corroborate the bearish outlook. MACD's signal line hovers below the 0 line, while RSI struggles to surpass the 60% mark after reaching 30%.

In summary, Silver (XAGUSD) maintains a sideways trajectory with a bearish bias, as evidenced by technical indicators and price action. 

Key Takeaways:

- High volatility in Silver (XAGUSD) with a range of over 60 pips, expanding Bollinger bands.
- EMA 50 bending towards EMA 200, signaling waning bullish sentiment.
- Prices testing mid band of Bollinger bands, suggesting potential resistance.
- Market remains within value area, but a breach below $24.00 could signal bearish trend.
- MACD and RSI indicators confirm bearish outlook, supporting the overall sideways trend.

Key Economic Releases to Watch Today


Forecast 0.2% vs Previous -0.1%



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