XAG/USD 1H Chart: Potential reversal south
Silver has been appreciating gradually against the US Dollar since the pair reversed from the lower boundary of a long-term descending channel located circa 14.00.
As apparent on the chart, the pair has already tested the upper channel line at 14.70. From a theoretical point of view, a reversal south occurs within the following trading sessions. Potential downside target is the Fibonacci 0.00% retracement at 13.95.
However, technical indicators suggest that this move might not be immediate, and the pair could re-test the upper channel line. It is unlikely that a breakout north occurs, as Silver is being pressured by the 55-, 100– and 200-hour SMAs 14.65.
As apparent on the chart, the pair has already tested the upper channel line at 14.70. From a theoretical point of view, a reversal south occurs within the following trading sessions. Potential downside target is the Fibonacci 0.00% retracement at 13.95.
However, technical indicators suggest that this move might not be immediate, and the pair could re-test the upper channel line. It is unlikely that a breakout north occurs, as Silver is being pressured by the 55-, 100– and 200-hour SMAs 14.65.
Silver has been appreciating gradually against the US Dollar since the pair reversed from the Fibonacci 0.00% retracement at 13.95. This movement has been bounded in the short-term ascending channel.
Currently, the price for Silver is re-testing the resistance level formed by the weekly PP at 14.70. If given resistance holds, it is likely that bearish momentum prevails in the nearest future. Potential downside target is the lower channel line located circa 14.30. Important support level to look out for is a combination of the weekly S1 and the monthly PP at 14.35. However, technical indicators for the short run suggest bullish scenario.
If given channel does not hold, a breakout north might occur within the nearest future, and the pair targets the Fibonacci 38.20% retracement at 15.21.