Silver has been depreciating against the US Dollar within the descending channel since the beginning of September. As apparent on the chart, the XAG/USD exchange rate reversed south from the upper channel line.
From a theoretical point of view, it is likely that some downside potential could prevail in the market, as the price for silver should target the lower channel line located in the 16.50/17.00 area. If the given channel holds, the general direction could remain south in the medium term.
However, the expected decline might not be immediate, as the exchange rate could gain support of the monthly PP at 17.67. If the given support level holds, it is likely that a reversal north could follow, and the rate could breach the given channel north. A possible upside target is the monthly R1 at 19.41
