FxNews – In today’s XAGUSD technical analysis, we closely examine the recent price movements in the silver market and forecast the next direction for XAGUSD by analyzing both the chart and its indicators.
Silver Technical Analysis
Silver, like Gold, has surpassed the bearish flag and breached the $24.1 resistance mark. It reached the top of the bullish flag but has since eased back, with the RSI indicator approaching an overbought state.
A closer look at the Silver 4-hour chart provides clearer insights into the XAGUSD technical analysis. The Awesome Oscillator, along with the overbought RSI, indicates a potential correction.
Despite a bullish market, we advise retail traders against short selling at the current price. The 38.2% Fibonacci level or the median line of the bullish flag could offer a good entry point. Analysts at FxNews anticipate a correction phase for Silver, possibly leading to a loss in some of its recent gains towards the Fibonacci retracement levels.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.