XAG/USD Price Analysis: Rising Wedge Breakdown Risk
- The recent rally in the price of silver (XAG/USD) is showing signs of weakening,as wedge support comes under pressure and bullish momentum fades.
- Technical indicators, such as a rising wedge pattern and momentum indicators trending downward, suggest a possible downside break.A stronger dollar often negatively impacts commodity prices, adding to the...
- Should the price of silver break below the wedge support,short positions could be established wiht a protective stop-loss order placed just above that level.
The silver price (XAG/USD) is facing a potential reversal! Our analysis reveals a weakening bullish trend, raising the alarm for a potential breakdown. Watch out; a strengthening U.S. dollar could pressure silver prices, with key support levels at $35.50 and $34.87. Technical indicators, including the rising wedge and waning momentum, suggest a possible downside break for the primarykeyword as the secondarykeywordS rise is possibly impacting the precious metal. A stronger dollar often negatively impacts commodities. Stay informed on current market trends and how they impact your portfolio by checking in with News Directory 3 – the go-to source for this type of essential data. Discover what’s next by monitoring key levels to anticipate potential moves.
Silver Price Rally Faces Reversal Risk as Dollar Gains Ground
Updated June 20,2025
The recent rally in the price of silver (XAG/USD) is showing signs of weakening,as wedge support comes under pressure and bullish momentum fades. Concurrently, indications suggest that the U.S. dollar may have found a bottom, perhaps increasing the risk of a bearish breakdown for the precious metal.
Silver’s upward trajectory could be nearing its end. Technical indicators, such as a rising wedge pattern and momentum indicators trending downward, suggest a possible downside break.A stronger dollar often negatively impacts commodity prices, adding to the potential for a meaningful price correction, especially if risk appetite diminishes.
Should the price of silver break below the wedge support,short positions could be established wiht a protective stop-loss order placed just above that level. An initial target for such a move would be $35.50, a level from which the price rebounded strongly on June 12.A break below $35.50 could then bring the uptrend support from early April, along with the October 2024 highs at $34.87, into focus.
bullish momentum,which previously propelled silver higher,is also showing signs of waning.Bearish divergence between the Relative Strength Index (RSI) and price has been observed, and the moving Average convergence Divergence (MACD) indicator is also trending downward toward the signal line. While the overall momentum picture is not yet outright bearish, it suggests a weakening of the upward trend.
The inverse correlation between silver and the U.S. Dollar Index (DXY) over the past month, registering a score of -0.66, further underscores the potential impact of a stronger dollar on silver prices. While not a strong correlation, it cannot be ignored.
The dollar has bounced in recent days, moving above downtrend resistance from February highs, after repeatedly failing to break horizontal support at 97.74. The RSI is trending higher toward neutral, and the MACD has crossed the signal line from above, suggesting a potential shift in momentum.
What’s next
Looking ahead, traders should monitor key levels for both silver and the U.S. dollar. For silver,a break below $35.50 could trigger further downside. For the dollar, levels to watch include 99.40, 100.25, 101.25, and 102. A failure of the bullish break for the dollar could see it test downside levels of 98.50 and 97.74.