XAG/USD, H4

On the four-hour chart, the XAG/USD pair has been growing for the second week in a row, rising from the 22.10 area (0.0% correction). Currently, there is a movement through a downwards fan and an active test of 23.20 (correction 50.0%), consolidation above which will allow the instrument to strengthen positions to 23.45 (correction 61.8%) and 24.29 (correction 100.0%). If 22.94 (correction 38.2%) is broken down, supported by the middle line of Bollinger bands, the decline will be able to resume around 22.63 (correction 23.6%) and 22.10.

Technical indicators allow continued growth: Bollinger bands and Stochastic are directed upwards, while the MACD histogram is increasing in the positive zone.

XAG/USD, D1

On the daily chart, the quotes are trying to grow after a three-month decline. Currently, the price has risen above 22.98 (50.0% correction) and is testing the middle line of Bollinger Bands around 23.20, consolidation above which will allow it to reach 23.70 (38.2% correction) and 24.58 (23.6% correction). If 22.98 is broken down again, the XAG/USD pair will be able to return to 22.26 (61.8% correction).

Technical indicators do not give a single signal: Bollinger bands are directed downwards, Stochastic is directed upwards but is approaching the overbought zone, and the MACD histogram is decreasing in the negative zone.

Support and resistance

Continuation of the positive dynamics seems more likely, and if 23.20 (correction 50.0%, H4, the middle line of Bollinger bands, D1) is broken, its targets will be 23.45 (correction 61.8%, H4), 23.70 (correction 38.2%, D1). If 22.94 (correction 38.2%, H4) is broken down, the decline may resume to 22.63 (correction 23.6%, H4) and 22.26 (correction 61.8%, D1).

Resistance levels: 23.20, 23.45, 23.70.

Support levels: 22.94, 22.63, 22.26.

Trading tips

Long positions may be opened above 23.20 with the targets at 23.45, 23.70 and stop loss around 23.00. Implementation period: 5–7 days.

Short positions may be opened below 22.94 with the targets at 22.63, 22.26 and stop loss around 23.15.