- Silver is holding up in Asia and is also a compelling technical setup on the daily chart.
- Bulls will look for an upward extension from a strong daily support structure.
XAG / USD closed on the offer on Thursday, but was unable to break through the R1 pivot and 4 hour resistance to hit a high of $ 28.00.
That being said, there is a bullish outlook as shown below if the price holds at its current support.
Meanwhile, the white metal had fallen from a low of $ 27.39 and ended the day up 0.13%, but the gold / silver ratio was a little higher by 0.27%, the gold being favored.
The greenback was on its back again, returning its gains made the day before following a surprise in several Federal Open Market Committee policymakers’ discussions in the minutes on cutting government bond purchases.
Members felt that it would be appropriate “at some point” if the economic recovery continued to gain momentum. Nonetheless, the greenback and US yields both melted on Thursday, which helped support the commodities sectors in an improved risk environment.
Money, technical analysis
Technically, the price of the white metal is facing a 4 hour wall of resistance and has so far been able to penetrate higher grounds in what is a daily correction from the previous daily bullish impulse.
This is illustrated in more detail on an hourly basis here:
Silver Price Analysis: XAG / USD Stays In Unstable Range Below $ 28.00
The inability to move higher at this point put the bears back on charge with views of the break under the support structure made up of mid-May highs near 27.60.
This preserves early May highs as the next block of support just below the 27 figure.
However, there is a compelling argument from an everyday point of view as follows:
If the price maintains the current daily support, further higher is likely to be expected, in line with the general trend.