Silver bulls have been quite non-volatile and impulsive, which gained more than 400 pips recently. Silver bulls reached at $15.80 area, can it sustain further? What are the charts and technical indicators are saying? Read more to find further insights into today’s XAGUSD Technical Analysis.
April 15, 2020 | AtoZ Markets – Silver is currently trading around $15.50 area, and holding by the dynamic level on the intraday chart. Moreover, XAGUSD has successfully retraced 50 per cent of the recent downfall amid the Coronavirus pandemic. As per the current scenario, the pair may enter on the correction before continuing the bearish trend in the coming days.
Silver Bulls Reached at $15.80 but May Face Resistance
XAGUSD is currently residing near $15.50 area after Silver bulls reached at $15.80, and rejected. The pair may face resistance at $16.00 area in the coming days, which is a very important event level.
Image: XAGUSD 4 Hour Chart
According to the 4-hour chart, XAGUSD is currently residing near $15.50 area and trying to climb higher. Moreover, the price found support at the dynamic levels, which have been carrying the price from an extended period. As per the current price action context, if the price can have an impulsive 4-hour bullish close above the horizontal level $15.50, the bulls may push the price higher towards $16.00 in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price, along with the Kijun line and Tenkan line. The dynamic levels are working as a strong support from an extended period, which may sustain further in the coming days. Alternatively, if the price breaks below the dynamic levels, the bears may gain momentum in the process.
XAGUSD Bears Are Still Present in the Market
According to the Daily chart, Silver bulls reached at $15.80 area and rejected, and the price currently trading around $15.50. The bulls may recover further higher before bears take over the market, and continue the bearish trend in the process. So, if the price reaches $16.00 area and rejects, which is also near the Fibo level 61.8, the bears may regain momentum and push the price lower towards $12.50.
Image: XAGUSD Daily Chart
Furthermore, the dynamic level of 20 EMA is residing below the current price, which may pull the price as Mean Reversion. Besides, the Stochastic Oscillator lines are residing above overbought level 80, and may have a bearish intersection.
To conclude, after a massive drop amid this COVID-19 pandemic situation, XAGUSD recovered quite well. As the world economy is still in uncertainty, Silver may face another drawdown in the coming days.