XAG/USD in Bearish Territory Ahead of Central Bank Announcements

The XAG/USD pair is currently trading in bearish territory below $64.75-$64.85 confluence, according to technical analysis.

This is due to the US Federal Reserve's upcoming rate decision on Wednesday, which will provide investors with more cues about central banks' future policy path and drive demand for non-yielding assets like XAG/USD.

The white metal holds below its 200-period Simple Moving Average (SMA) at $64.91 and the 38.2% Fibonacci retracement at $64.78, keeping the bias bearish.

The Moving Average Convergence Divergence (MACD) indicator remains below zero with a slightly negative latest reading, while the Relative Strength Index (RSI) around 42 suggests waning momentum after the recent pullback.