XAG/USD trades in mid-$33.00s
Silver (XAG/USD) is trading lower after testing a three-week high during the Asian session on Friday (4/25) and is currently trading in the mid-$33.00s, down 0.30% for the day. However, the technical setup warrants caution before positioning for any meaningful depreciating move.
This week’s break above the $33.00 round-figure, which represents the top end of a multi-day-old range and the 61.8% Fibonacci retracement level of the March-April downturn, was seen as a key trigger for bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and are still far from being overbought territory. This, in turn, suggests that the path of least resistance for XAG/USD is to the upside.
Hence, any subsequent decline might still be seen as a buying opportunity near the $33.00 hurdle breakout, now turned support. A convincing break below the said handle might prompt some technical selling and drag XAG/USD further towards the $32.40 support en-route the $32.10-$32.00 area. Some follow-through selling would suggest that the recent recovery from the $28.00 level, or YTD lows, has run out of steam.
On the flip side, the $33.70 area now seems to have emerged as an immediate hurdle, above which XAG/USD could attempt to reclaim the $34.00 level. The momentum could extend further towards the $34.30 intermediate resistance en-route the next relevant barrier near the $34.55-$34.60 area, or the highest level since October 2024 touched last month. The white metal might eventually attempt to conquer the $35.00 psychological mark.
Source:FXStreet
