XAGUSD has been moving sideways for ten trading sessions now. The price broke the 50% Fibonacci retracement almost two weeks ago; this often indicates a change in the trend; however, the price seems to be consolidating close to the $26.05 price line.
The price is struggling to break the resistance at $26.271, but the conditions are set for the precious metal to make another breakout attempt. The relative strength index dropped to 31%, and the markets started reacting; it is currently at 41% with hopes of continuing to rise.
The Bollinger bands are very wide, and this will bring higher volatility to the commodity. The price trades closer to the lower band but not close enough to be considered relatively low. Our parabolic SAR indicator suggests that the pair will continue its downward trend. The short and long-term moving averages made a cross five trading sessions ago, but the price managed to stay within the same price range.
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