Silver correction has been capped at $34.00; the trend remains positive.
US Dollar’s recovery is losing momentum ahead of US employment and services data..
XAG/USD bulls are focusing on the $3460-$34.80 resistance area.
Silver prices (XAG/USD) correction from year-to-date highs below $35.00 has been limited at the $34.00 area, and the precious metal bounced up again to consolidate at the $34.50 area on Wednesday, with the 34.80 high at a short distance.
Bears have been contained well above a previous resistance area at the $33.50-$33.70, and the 4-Hour RSI remains well above the 50 level, highlighting the pair’s positive bias.
The US Dollar Index seems to have lost momentum, following a moderate recovery on Tuesday. The enthusiasm from the strong job openings data seems to have faded, with investors growing cautious ahead of US ADP and Services PMI data. The Dollar needs more good news to keep US debt and tariffs concerns subdued.
All in all, XAG/USD maintains its bullish trend intact with the 161.8% Fibonacci extension of the May 20-22 rally, at $34.60, holding bulls ahead of Monday’s high, at $34.80. Above here, a late 2012 high lies at $35.40
On the downside, immediate support is at $34,00, followed by the mentioned $33.70 and then at the $32.65-$32.75 zone.
XAG/USD 4-Hour Chart
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