Key Moments
- XAG/USD trades near $66.35 in early European hours on Monday, drawing fresh buying interest.
- Price action remains capped below the 20-period Bollinger SMA and the 100-day moving average, with the RSI (14) just above 40.
- Key resistance stands at $70.18 and $71.56, while support is seen at $61.80 and $61.50.
Silver Edges Higher as Geopolitical Tensions Ease
Silver (XAG/USD) trades around $66.35 in early European dealings on Monday, extending a modest advance as buyers step in. The move comes as headlines around progress in a US-Iran peace agreement help temper tensions in the Middle East.
Mediators Qatar and Pakistan said on Monday that the first round of talks between the US and Iran aimed at reaching a final agreement to end the war concluded with “encouraging progress,” according to BBC. The discussions started on Sunday in Switzerland following last week’s initial agreement between the two countries. Technical-level negotiations are expected to continue through the week.
Technical Picture: Downtrend Intact Despite Near-Term Bounce
On the daily chart, XAG/USD continues to trade under pressure, remaining well below both the 20-period Bollinger simple moving average and the 100-day moving average (MA). This alignment signals a constrained market within a broader corrective phase, where rallies have so far struggled to gain traction.
The Relative Strength Index (14) hovers just above 40, indicating soft downside momentum rather than a clear capitulation. Nevertheless, the prevailing structure continues to favor sellers as long as spot prices remain below the key clustered resistance levels identified by the moving averages and Bollinger bands.
Key Technical Levels to Watch
On the upside, initial resistance is located near the middle Bollinger band around $70.18. A sustained move above this threshold would help alleviate immediate bearish pressure and could allow a rebound toward the June 17 high at $71.56.
Beyond that, the next notable cap comes at the 100-day MA, positioned around $76.90. A further extension higher could bring the upper Bollinger band, currently near $78.55, into focus.
On the downside, the lower Bollinger band around $61.80 marks the first important support area. A break below this zone would expose the June 11 low at $61.50, opening the door for deeper losses if selling pressure accelerates.
| Level | Type | Price | Comment |
|---|---|---|---|
| $78.55 | Resistance | Upper Bollinger band | Potential target if bullish extension develops |
| $76.90 | Resistance | 100-day MA | Major barrier in broader corrective phase |
| $71.56 | Resistance | June 17 high | Intermediate upside objective after $70.18 |
| $70.18 | Resistance | Middle Bollinger band | First key level to ease immediate bearish bias |
| $61.80 | Support | Lower Bollinger band | Next meaningful downside floor |
| $61.50 | Support | June 11 low | Level exposed on a break below $61.80 |
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