XAGUSD – Silver is consolidating to strengthen further

May 11

XAGUSD is maintaining a very clear bullish structure on the H4 timeframe as the price continues to cling to the support cluster from EMA34, EMA89 and the Ichimoku cloud, indicating that buyers are still in control of the main trend. After a strong bounce from the 74–76 region, the price is currently consolidating sideways just below the 81.8–82.2 resistance zone — this is a common price consolidation pattern before the next breakout.

In terms of news, the weakening USD, falling US bond yields, and expectations of a softer Fed stance are creating very good momentum for precious metals. The return of hidden foreign capital is also helping silver maintain its strength in the short term.

Technical analysis suggests that if the price holds the 78.3–79.0 range, XAGUSD is highly likely to bounce back to retest 82, and upon finding this level, the upward momentum could extend rapidly to 86.0—the next target resistance zone on the chart.

Currently, buying remains the preferred strategy.
As long as XAGUSD remains above 78.3, the uptrend remains intact and the 86 target will be achieved in future sessions.

May 12

Trade closed: target reached