FX.co ★ Silver: 23.376 key obstacle

The price of silver edged higher today, reaching 23.492 level. Now, it has retreated a little and is trading at 23.286 at the time of writing. After its strong rally, a retreat was natural. USD's rally brought sellers on XAG/USD.

Fundamentally, the JOLST Job Openings is expected to drop from 9.59M to 9.41M, while Canadian GDP may report a 0.1% drop. These represent high-impact events, so the volatility could be high in the US trading session. Tomorrow, the Eurozone CPI Flash Estimate and the US ADP Non-Farm Employment Change, Unemployment Claims, and ISM Manufacturing PMI should bring high action.

XAG/USD Upside Uncertain!

Technically, XAG/USD escaped from a downward channel pattern. It has tested and retested the broken downtrend line signaling a potential upwards movement. Still, as you can see on the H1 chart, the rate registered a false breakout with great separation above 23.376 announcing exhausted buyers.

Now, it has dropped below the median line (ml) and under the weekly pivot point of 23.305 again. In the short term, it could test and retest the broken downtrend line.

XAG/USD Outlook!

Jumping and stabilizing above 23.376 and above the median line (ml) confirms an upwards movement and is seen as a new buying opportunity.