- Summary:
- Silver prices (XAGUSD) are trending upwards onth eday on the back of risk-off market sentiment following poor China Manufacturing PMI data.
The price of silver (XAGUSD) is ticking higher this Thursday and is presently trading around $118.12 after the FOMC decision of yesterday and weaker-than-expected PMI data from China. Silver prices had experienced a bullish run having broken above the symmetrical triangle, but retreated as traders repositioned for yesterday’s Fed announcement.
The market is now in a risk-off mood as silver prices are on the way to making new intraday highs, having touched intraday low of $17.78.
Intraday bias continues to remain bullish, with price action supported by the ascending trendline which extends from the lower border of the resolved symmetrical triangle. Further support comes from the 38.2% Fibonacci retracement line at 17.612.
Resistance targets exist at 18.44 (23.6% Fibonacci retracement) and 18.659 (recent highs seen at August 29 and September 23). These could be the next price targets if the daily candle of silver continues to remain above 17.78.
On the flip side, a daily close below $17.78 could push down XAGUSD to existing support areas at 17.612 (38.2% Fibonacci retracement) and below this area, the 50% Fibonacci retracement line at 16.98 (previous lows of August 21 and September 29/30) could become a relevant price target if downside momentum continues.