The price of Silver was into a corrective phase in the short term after registering an amazing rally. The retreat could help us to catch new upside movements. In the short term, the rate has found temporary support and now it tries to give birth to a new leg higher.
The price action developed a Falling Wedge reversal pattern, but we still have to wait for confirmation before taking action. The pressure is still high, so the pattern could be invalidated anytime. XAG/USD increased a little today as the Dollar Index registered a strong sell-off.
The DXY ignored the US ISM Manufacturing PMI which was reported at 60.8 points above 60.4 points expected, but lower compared to the 61.1 points in the previous reporting period.
XAG/USD Technical Analysis!
As you can see on the H4 chart, the price has found support, demand, on the 150% Fibonacci line and now it has escaped from the Falling Wedge’s pattern. Unfortunately, it has failed to close above the weekly pivot point of 24.058.
It could come back to test and retest the pattern resistance, the downtrend line before trying to climb higher. A valid breakout above the pivot point and a new higher high, a bullish closure above 24.097 could signal further growth.
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