XAG/USD approaches 200-day SMA/61.8% Fibo. confluence hurdle

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<li><strong>Silver turns positive for the fourth straight day and climbs back closer to a multi-week high.</strong></li>
<li><strong>The technical setup seems tilted in favour of bulls and supports prospects for further gains.</strong></li>
<li><strong>Bulls might wait for a move beyond the $23.30-$23.35 confluence before placing fresh bets.</strong></li>
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<p><a href="https://www.fxstreet.com/rates-charts/xagusd">Silver</a> (XAG/USD) reverses an intraday dip to the $22.85 area and builds on its intraday upward trajectory through the first half of the European session on Friday. The white metal currently trades around the $23.20 region, up nearly 0.50% for the day, and seems poised to prolong its recent goodish recovery from a seven-month low touched on October 3.</p>
<p>From a technical perspective, the emergence of some dip-buying near the 50% Fibonacci retracement level of the August-October downfall validates the constructive <a href="https://www.fxstreet.com/rates-charts/forecast">outlook</a> for the XAG/USD. Furthermore, oscillators on the daily chart have just started gaining positive traction and support prospects for a further appreciating move. That said, it will still be prudent to wait for a sustained move beyond the $23.30-$23.35 confluence hurdle – comprising the 100-day and the 200-day Simple Moving Averages (SMAs) and the 61.8% Fibo. level – before placing fresh bullish bets.</p>
<p>The XAG/USD might then climb to the next relevant resistance near the $23.75-$23.80 region (September 22 high) and then aim to reclaim the $24.00 round figure for the first time since early September. The positive momentum could get extended further towards the $24.30-$24.35 resistance zone en route to the August monthly swing high, around the $25.00 psychological mark.</p>
<p>On the flip side, the 50% Fibo. level, around the $22.85 region, might continue to protect the immediate downside ahead of the $22.70-$22.65 horizontal support. This is followed by the weekly trough, around the $22.40-$22.35 zone, which nears the 38.2% Fibo. level and should act as a key pivotal point. A convincing break below might shift the near-term bias back in favour of bearish traders and prompt aggressive technical selling around the XAG/USD.</p>
<p>Silver might then turn vulnerable to accelerate the fall further below the $22.00 mark, towards the 23.6% Fibo. level, around the $21.75 area. The subsequent downfall has the potential to drag the XAG/USD to the $21.35-$21.30 intermediate support en route to the $21.00 mark and back towards retesting a seven-month low, around the $20.70-$20.65 zone, or a seven-month low touched on October 3.</p>
<h2>Silver daily chart</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/image-638333876598837659.png" target="_blank" rel="noopener"><img decoding="async" alt="fxsoriginal" src="https://editorial.fxstreet.com/miscelaneous/image-638333876598837659.png" style="width: 650px; height: 339px;" /></a></p>
<h3>Technical levels to watch</h3>
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<br /><a href="https://www.fxstreet.com/news/silver-price-analysis-xag-usd-approaches-200-day-sma-618-fibo-confluence-hurdle-202310200834">Source link </a></p><p>The post <a href="https://forextraderhub.com/xag-usd-approaches-200-day-sma-61-8-fibo-confluence-hurdle.html">XAG/USD approaches 200-day SMA/61.8% Fibo. confluence hurdle</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>