Silver (XAG/USD) attracted some sellers at the start of a new week and fell back below the $32.00 round figure during the Asian session on Monday (4/14). The white metal, for now, seems to have snapped its three-day winning streak to over one-week highs touched on Friday, although the technical setup supports prospects for some dip-buying at lower levels.
Last week's breakout through the 50% Fibonacci retracement level of the recent slump from the March swing high to fresh YTD lows touched last week was seen as a key trigger for bullish traders. However, the subsequent move higher struggled to find acceptance above the 61.8% Fibo. level. Moreover, oscillators on the daily chart are yet to confirm the positive outlook and warrant caution before positioning for any meaningful move up.
Hence, it would be prudent to wait for some follow-through buying beyond the 200-period Simple Moving Average (SMA) on the 4-hourly chart, currently pegged around the $32.55-$32.60 region, before placing fresh bullish bets. XAG/USD might then aim to reclaim the $33.00 mark and climb further towards the 78.6% Fibo. level, around the $33.20 area, en-route the $33.50-$33.55 horizontal barrier and the $34.00 area, or March swing highs.
On the flip side, any further pullback is likely to find decent support and remain contained near the $31.35-$31.30 region, or the 50% Fibo. level. However, a convincing break below the last might trigger some technical selling and drag XAG/USD further below the $31.00 round-figure mark, towards the $30.55 area, or the 38.2% Fibo. level. The downward trajectory could extend towards the psychological level of $30.00 en route to the area of $29.55 (Fibo. 23.6%).(Newsmaker23)
Source: FXstreet
