Silver is starting to come under heavy selling pressure after the price of the gold plunge by over $30.00 on Tuesday as the US dollar started to firm. The Bollinger Band indicator on the four-hour time frame shows that the bans are widening, which usually indicates a large trading range. If selling pressure in gold persists then silver is expected to test towards the lower Bollinger Band.
XAGUSD is only bullish while trading above the $27.30 level, key resistance is found at the $27.60 and the $28.00 levels.
If XAGUSD trades below the $27.30 level, sellers may test the $27.80 and $27.60 support levels.
