A combination of risk-off flows and hopes that the FOMC can still push back on its easing plans seem to be propping up the safe-haven currency for the time being.
Check out these inflection points I’m watching on the commodity’s 4-hour time frame.
Price is now down to the 38.2% Fibonacci retracement level, which happens to coincide with the 100 SMA dynamic inflection point. A larger pullback could still reach the 50% Fib near S1 ($24.13) or even the 61.8% level that’s right in line with an ascending trend line, 200 SMA dynamic support, and an area of interest.
Silver is hitting a long-term ceiling, placing it back in correction mode as it approaches a former resistance zone.
Just stay on the lookout for a break below the trend line and S2 ($22.75) since this might mean that a reversal is in order.
The 100 SMA is still safely above the 200 SMA to signal that support levels are more likely to hold than to break, so XAG/USD might soon make its way back up to the highs near R1 ($25.80) and beyond.