FX.co ★ Wiking | XAG/USD, SILVER

The XAG/USD pair fell slightly during the Asian session today, ending the two-day rising trend and reversing back below the previous day's weekly high. Nonetheless, the price action still does not show a convincing bearish tone. It is trading below $67.00, down 0.30% for the day, as the market prepares for the release of key US Nonfarm Payrolls (NFP) data. Ahead of the data, the declining probability of a rate increase by the US Fed in September and falling US Treasury yields are keeping the US Dollar (USD) at its weakest in over a week. On that note, the weak dollar is a major supporting force behind USD-denominated commodities such as XAG/USD. However, from a technical perspective, bulls face risks, and this week's decent recovery above the $63.30 support may not continue. According to the daily chart analysis, silver is trading at 66.75. Currently, the XAG/USD pair is hovering below the 200-day Simple Moving Average (SMA) of $72.84 as well as the mid-level Fibonacci retracement of the May-July price decline. Furthermore, conflicting technical momentum indicators confirm that rallies are currently constrained. The Relative Strength Index remains in the mid-50s while the Moving Average Convergence Divergence (MACD) moves below zero, reflecting diminishing buying interest and confirming the prevailing negative sentiment. In terms of resistance levels, the 38.2% retracement at $67.83 marks the first obstacle, while the next major resistance level can be located at the 50.0% retracement of $71.89 as well as the 200-day SMA of $72.84. A decisive move beyond this group could help reduce the overall negative trend and expose the next key level: the 61.8% retracement at $75.95. As for support levels, the 23.6% Fibo level at $62.81 is the nearest support, while a stronger one is at the 0.0% retracement, which coincides with the last cycle bottom at $54.69.