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  • Silver is trapped between daily support and resistance.
  • Bulls are taking on the bears from hourly support.

XAG/USD has broken a significant EMA on the 4-hour time frame which could result in a continuation towards daily resistance without giving back more ground to a 38.2% Fibonacci retracement of the daily impulse.  

The following illustrates the market structure and latest price action:

Daily chart

Silver is destined to move higher as the price meets demand from the support structure and the confluence of counter-trendline as it pierces the 21-day EMA.  

4-hour chart

However, the price would be expected to test prior resistance and the 21-EMA on the 4-hour time frame.  

1-hour chart

Meanwhile, there is a build-up of support on the hourly time frame which is guarding a deeper retracement.  

Failures to break the support would be expected to result in an upside continuation to the daily resistance target.  

 

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