XAG/USD eases from three-week top, bullish potential seems intact

<p> <br />
</p>
<div>
<p>&#13;<br />
<span>Share:</span>&#13;<br />
&#13;
</p>
<ul>
<li><strong>Silver climbs to a three-week high during the early European session on Tuesday.</strong></li>
<li><strong>The technical setup favours bullish traders and supports prospects for further gains.</strong></li>
<li><strong>A convincing break below the $22.70-65 area is needed to negate the positive bias.</strong></li>
</ul>
<p>Silver regains positive traction following the previous day&#8217;s good two-way price swings and jumps to a three-week high during the early part of the European session on Tuesday. The white metal, however, struggles to find acceptance or build on the move beyond the $23.35-$23.40 confluence &#8211; comprising the 200-period Simple Moving Average (SMA) on the 4-hour chart and the 50% Fibonacci retracement level of the downfall from the June swing high.</p>
<p>Looking at the broader picture, the formation of an ascending channel from the vicinity of the $22.00 mark, or the multi-month low touched in June, points to a well-established short-term bullish trend. Moreover, technical <a href="https://www.fxstreet.com/rates-charts/indicators">indicators</a> on hourly charts are holding comfortably in bullish territory and have just started gaining positive traction on the daily chart. This adds credence to the constructive setup and supports prospects for a further near-term appreciating move.</p>
<p>Bulls, however, might still wait for a sustained strength above the $23.35-$23.40 confluence before positioning for a move towards testing the 61.8% Fibo., around the $23.60 region, en route to the $24.00 round figure. The positive momentum could get extended further towards the $24.20-$24.25 intermediate barrier en route to the June monthly swing high, around the $24.55 region. The XAG/USD might eventually aim towards reclaiming the $25.00 psychological mark.</p>
<p>On the flip side, the 38.2% Fibo., around the $23.00 round figure, now seems to act as immediate support. Any further slide is likely to attract some buying and remain limited near the $22.65-$22.70 area, or the 23.6% Fibo. level. A convincing break below the latter could make the XAG/USD vulnerable to sliding back towards the $22.mark. Some follow-through selling should pave the way for fall towards the $21.70-$21.65 zone en route to the $21.25 support and the $21.00 mark.</p>
<h2>Silver 4-hour charty</h2>
<p><a href="https://editorial.fxstreet.com/miscelaneous/image-638246574189443771.png" target="_blank" rel="noopener"><img decoding="async" alt="fxsoriginal" src="https://editorial.fxstreet.com/miscelaneous/image-638246574189443771.png" style="width: 650px; height: 314px;" /></a></p>
<h3>Key levels to watch</h3>
<p> </p>
</p></div>
<p><br />
<br /><a href="https://www.fxstreet.com/news/silver-price-analysis-xag-usd-eases-from-three-week-top-bullish-potential-seems-intact-202307110732">Source link </a></p><p>The post <a href="https://forextraderhub.com/xag-usd-eases-from-three-week-top-bullish-potential-seems-intact.html">XAG/USD eases from three-week top, bullish potential seems intact</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>