By: DailyForex.com
Silver (XAG/USD) had a very Bullish run in the last 11 weeks, rising from a low of 26.10 in June to a high of 35.17 on the 21 of this month. So it comes as no surprise that along with allot of other currency pairs, we are seeing a pull back. Silver has pulled back, but not as deep as some of the other pairs, only about 23.6% of the Bullish move. Yesterday price kissed the Monthly R1 at 33.32 and printed a hammer candle on the daily chart suggesting that the correction is possibly over, and price was going to continue higher.
Asian trading today saw the pair rise pretty much from the opening be ll and at time of writing the pair is at 34.13. There is a strong resistance zone at 34.48 (Weekly Pivot) where price consolidated over the past 2 weeks and again at 34.93 and 35.19. The key to the Bullish continuation will a break of the previous high after which a run at the 2012 high at 37.48 is likely. To the down side things are much more congested with support levels that mimic XAU/USD's move up over the same time frame, and resembling a stair case. Key support levels include yesterdays low at 32.32, 33.09 and 32.41. The monthly Pivot is way down there at 30.14 and while unlikely to be re-tested in the immediate future...but a close back below 33.00 will make it much more likely with the 38.2 Fibo level in the way at 31.71.
Happy Trading!
