- XAG/USD is up more than 3% on Tuesday.
- RSI on the four-hour chart holds above 50 in early American session.
- Next near-term target for silver could be seen at $26.20.
The XAG/USD tested $25 on Monday but managed to close the day above that critical support. With the greenback coming under heavy selling pressure on Tuesday, the pair gained traction and rose to a daily high of $25.98 in the early American session. As of writing, silver was up nearly 3% on the day at $25.85.
Silver technical outlook
The Relative Strength Index (RSI) indicator on the four-hour chart rose above 50 with Tuesday’s upsurge, suggesting that the bullish momentum is gathering strength and there is more room on the upside before XAG/USD turns oversold. Additionally, the pair broke above the 20-SMA on the same chart, confirming the bullish bias.
On the upside, the initial hurdle is located at $26.20 (Fibonacci 38.2% retracement of Feb. 25 – Mar. 5 drop) ahead of $26.50 (Fibonacci 50% retracement) and $26.80 (100-period SMA, 200-period SMA).
Supports, on the other hand, could be seen at $25.40 (20-period SMA) and $25 (psychological level, static support).
Additional levels to watch for