Silver (XAGUSD) experienced a robust 2.3% rally during the Asian trading session, extending its momentum into the London trading session. This surge follows last week's disappointing Non-Farm Payroll (NFP) results, as investors seek safe-haven assets amidst economic uncertainty.
Despite the rally, the Relative Strength Index (RSI) has not yet reached the overbought zone, indicating potential for further upside. Additionally, the Exponential Moving Average (EMA) 50, though positioned below EMA 200, is showing signs of bullish momentum strengthening, with EMA 50 pointing towards EMA 200. Traders anticipate a bullish confirmation, particularly a golden cross on the EMAs, if prices maintain above EMA 50.
Key support for XAGUSD lies at the previous swing low of $26.05, while potential resistance is seen at the 161.8% Fibonacci extension level around $27.50. These levels will likely play a crucial role in determining the direction of future price movements.
Overall, the short to medium-term trend for XAGUSD remains bullish, supported by the ongoing rally and positive market sentiment. Traders are closely monitoring key levels and technical indicators for further insights into silver's price action.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
