XAGUSD continues to lose ground and is headed to its third day closing with a loss, this equates to -2.75%, but the precious metal has been on a dive since mid-June.
The precious metal has shown some signs of recovery, but they were just pullbacks on the downtrend. The pair could now sink all the way to the $22.384 level, which is the previous low reached just eight sessions ago.
The Bollinger bands are wide and moving down, which strengthens the downtrend. There is still some more room for the price to continue dropping, but the Relative strength index might stop the bleeding; however, we have seen the RSI stay oversold for four sessions during the previous trading week.
Relative Strength Index is currently at 33%; there is a chance that the price could start a recovery, but at this point is unlikely. Our parabolic SAR indicator suggests that the price will continue to drop in the short term; current conditions are not optimal to place a trade. Once the pair shows a sign of recovery, it might be a good idea to place a long trade as it could be hitting the dip.
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