XAGUSD continues the downtrend it started back on April 19th, the pair has lost more than 16% in 16 sessions, that is including today's 1.45% gains, the pair reached its lowest level since July 2020, but it looks like it might have found a good support level that could help the price bounce back.
The Bollinger bands are wide and this will allow high volatility to continue in the upcoming trading sessions, although the general trend continues to be downwards, there could be a retracement as the pair trades very close to the lower band, suggesting that the price is relatively low.
The relative strength index is at 27% which is oversold, perhaps one of the reasons we are seeing a small recovery is precisely the current status of XAGUSD. The resistance level is at 22.384 which is not too far from the current price. Investors might see this as an opportunity to buy the metal at a low price, which will likely boost the pair.
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