- The Silver Bulls are on the march and face key resistance.
- There could be a further reduction in the uptrend on the daily chart.
XAG / USD was ending Wall Street 0.83% higher and had traveled from a low of $ 27.46.
The US dollar edged down on Tuesday to print 89.5350 to a new 4-1 / 2 month low against a basket of DXY peers.
Meanwhile, the commodities complex was down on the day according to the CRB index which fell 0.26% at the close of Wall Street.
The market as a whole is consolidating mainly on data showing inflationary pressures, but Federal Reserve officials say it won’t last.
Fed Vice Chairman Richard Clarida said the price pressures would prove largely transient. This follows similar comments from other Fed officials.
As per previous analysis Silver is on track for daily higher extension, XAG / USD broke 4 hour resistance marked by series of 4 hour lows against last week’s business.
“ Price action in this current area can be watched from a lower time frame perspective for bullish structure and bullish technical conditions. ”
Live market analysis
A retest of previous 4-hour highs lines up perfectly with the 38.2% Fibonacci of this current uptrend where demand should support the bullish bias.
On the upside, bulls will look to replenish weekly highs of $ 28.75.
A breakout there, however, will put the dynamic trendline support back under pressure and the focus will be on $ 26.60 as an earlier resistance structure.