Silver Price Analysis: XAG/USD collapses more than 3%, approaches the 200-DMA

• XAG/USD has moved downward after breaking support levels, remaining above the 200-day EMA at $22.96, which is now under pressure.
• Oscillators such as the Relative Strength Index (RSI) and three-day Rate of Change (RoC) indicate a negative scenario for Silver.
• If the price surpasses the May 26 low, Silver could potentially drop to the $21.00 level.
• If buyers can push XAG/USD back above the 100-day EMA at $23.54, a challenge to $24.00 could be expected.

Silver price plunges more than 3%, and sellers are eyeing a challenge of the 200-day Exponential Moving Average (EMA), as overall US Dollar (USD) strength drives the financial markets on Tuesday. Fed speakers will cross newswires, while the Fed Chair Jerome Powell’s testimony at the US Congress dampened the market mood. At the time of writing, XAG/USD exchanges hands at $23.14 after hitting a daily high of $24.02.

XAG/USD Price Analysis: Technical outlook

The XAG/USD has shifted downward biased after cracking support levels. Yet stills above the 200-day EMA ) at $22.96, which is up for grabs, as Silver’s spot price continues to nosedive during the North American session. Oscillators like the Relative Strength Index (RSI) indicator portray a negative scenario for XAG’s buyers, with the RSI turning negative, while the three-day Rate of Change (RoC) is at its lowest level since May 25.

That said, the XAG/USD first support would be the $23.00 figure. A breach of the latter will expose the 200-day EMA, followed by the May 26 low at $22.68. if XAG/USD surpasses the latter, Silver could plummet to the $21.00 handle. Conversely, if XAG/USD buyers reclaim the 100-day EMA at $23.54, they could challenge $24.00.

XAG/USD Price Action – Daily chart