Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Silver Price Forecast: XAG/USD Fundamentals Provide Hope to the Bulls

Silver Price Forecast: XAG/USD Fundamentals Provide Hope to the Bulls

What's on this page

Silver (XAG/USD) outlook:

  • Silver bullish breakout confirmed after breaking above descending trendline
  • CCI suggests that Silver may be overbought
  • EMA provides additional resistance

Silver Advances as Dollar Takes Strain

The ongoing battle to contain the spread of the Coronavirus in the US, combined with dismal retail sales data, weighed heavy on the USD ahead of the FOMC decision, providing a catalyst for price action.

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

However, the bullish momentum prevailed after Federal Reserve Chair, Jerome Powell announced the Fed’s commitment to maintain near zero interest rates whilst continuing to provide Quantitative Easing until there is “substantial further progress” in the US economic recovery. The ‘wait and see’ approach appeared to have increased the demand for Gold, Silver and other safe-haven assets as the size of the fiscal stimulus package remains a mystery.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
How news can impact your trades?
Get My Guide

Silver (XAG/USD) Technical Analysis

After breaking above the triangle pattern that encapsulated price action since August, bulls have run into a wall of resistance formed by the 50% Fibonacci retracement level plotted between the August 2020 high and September 2020 low. These levels have continued to provide both support and resistance for XAG/USD, holding both bulls and bears at bay. Meanwhile, the Commodity Channel Index (CCI) is above the 100 threshold on both the monthly and the daily chart, a potential indication that the precious metal may be oversold. However, as long as prices remain above the 10-period Exponential Moving Average, the bullish momentum may persist.

Silver (XAG/USD) Daily Chart

Silver Daily Chart

Chart prepared by Tammy Da Costa, IG

{{Webinar|980972059|James Stanley’s Webinar for US Dollar Price Action}}

Silver (XAG/USD Monthly Chart

Silver Monthly Chart

Chart prepared by Tammy Da Costa, IG

Silver Sentiment Remains in Favor of the Bulls

Starts in:
Live now:
Nov 28
( 03:11 GMT )
Learn how to identify trends with trader sentiment
Weekly Commodities Trading Prep
Register for Webinar
Join Now
Webinar Has Ended

At the time of writing, IG Client Sentiment shows 87% of retail traders net-long with the ratio of traders long to short at 6.41 to 1. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Silver prices may continue to fall.

Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Silver price trend may soon reverse higher despite the fact traders remain net-long.

--- Written by Tammy Da Costa, Market Writer for

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.