XAG/USD trading strategy
XAG/USD chart and technical analysis
Silver made significant gains and recovered 9.7% in the last two weeks. The price closed above the $25.0 and $25.27 resistance areas and will possibly reach the $26.12 6-month high in the coming days.
I am expecting the price will make a small correction and will retrace to the $24.96 support level before heading for new highs. I would wait for the price to drop to the $24.96 support level before entering a long trade.
The price is expected to make new highs in the coming weeks as the inverted H&S pattern has also appeared on the daily time frame which indicates the continuation of the bullish trend.
Silver fundamental analysis
Fundamentally, the two commodities gold and silver are in a steep bullish trend amid the weakening US dollar index. The rally of both commodities is likely to continue in the near future as gold almost reaches a new all-time high.
Moreover, the NFP data will be published on Friday and if the data turns out positive it will strengthen the USD and if the data turns out negative will weaken the USD index and the price of both gold and silver will surge to new highs.
