Silver Price Forecast: XAG/USD accelerates losses, $37.60 support in danger

LONDON (August 11) Silver (XAG/USD) accelerated losses on Monday, weighed by a moderate rebound on the US Dollar and investors’ appetite for risk as hopes of a trade agreement between the US and China and a peace deal in Ukraine remain alive.

In the absence of key macroeconomic releases, investors remain hopeful that US and Chinese negotiators will find common ground to extend their trade truce and avoid returning to triple-digit reciprocal tariffs, which would revive concerns about international trade and global economic growth.

Meanwhile, the talks between US and Russian negotiators are feeding hopes of a peace deal in Ukraine ahead of the summit between the US and Russian presidents, Trump and Putin, in Alaska later this week.

Technical analysis: XAG/USD rejected at the $38.00 previous support

From a technical perspective, Silver’s impulsive reversal from the $38.50 resistance area has broken the bottom of the ascending channel, highlighting that the bullish cycle from August 1 lows has reached its top.
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The pair has found support at the 38.2% Fibonacci retracement of the mentioned rally, which meets the August 6 low, at $37.60. The lack of acceptance beyond previous support at $38.00 suggests that further depreciation is on the cards.

The next targets are the August 5 low and the 50% Fibonacci retracement level, near $37.30, ahead of Friday’s low of $36.21 and the 61.8% Fibonacci retracement, a common target for corrective reactions, at $36.05.

T the upside, the pair would need to breach the previously mentioned intra-day high, at $38.00 (August 7,8 lows) to ease bearish pressure and shift the focus towards the $38.40-38.50, which capped tha pair on August 7 and 8.

FXStreet