Silver Price Analysis: XAG/USD bears attack three-week low around $18.00, eyes further downside

• Silver price remains pressured at multi-day low, breaks 11-week-old horizontal support.
• Bearish MACD signals, the absence of oversold RSI add strength to the downside bias.
• 50-DMA, three-month-long descending resistance line challenge buyers.

Silver price (XAG/USD) takes offers to refresh the three-week low, reversing the previous day’s corrective bounce, as bears poke $18.00 during early Wednesday morning in Europe.

In doing so, the bright metal breaks a horizontal area comprising multiple levels marked since early June amid bearish MACD signals. Also keeping the sellers hopeful is the downward sloping RSI (14) line, not oversold.

With this, the XAG/USD sellers are all set to challenge the yearly low marked earlier in the month around $17.55.

However, the likely oversold RSI and the 61.8% Fibonacci Expansion (FE) of the metal’s June-September moves, near $16.90, could challenge the silver bears afterward.

Meanwhile, recovery moves may have to stay firmer beyond the support-turned-resistance area surrounding $18.20-30.

Following that, a run-up towards the 50-DMA hurdle of $19.30 can’t be ruled out. Though, a downward sloping resistance line from early June, near $19.80, precedes the $20.00 threshold to test the XAG/USD buyers afterward.

Silver: Daily chart

Trend: Further downside expected