Silver (XAG/USD) attracts some sellers following an Asian session uptick to the $48.55–$48.60 region, eroding a part of the previous day’s gains. The white metal currently trades around the $47.75 level, down 0.70% for the day.
From a technical perspective, XAG/USD has been struggling to build on its strength beyond the 38.2% Fibonacci retracement level of the corrective slide from the all-time peak touched in October, which lies around the $49.35–$49.40 supply zone. This resistance favors bearish traders and supports the case for a further near-term depreciating move.
However, neutral oscillators on the daily chart suggest caution. It is prudent to wait for a decisive break and acceptance below the $47.00 mark before placing fresh bearish bets. If this occurs, XAG/USD could accelerate its decline towards the $46.45 intermediate support, en route to the $46.00 psychological round figure, before aiming to retest the October swing low near the $45.75 region.
On the upside, the Asian session high around the $48.55–$48.60 zone now acts as an immediate hurdle. A sustained break above this level could see XAG/USD reclaim the $49.00 mark. However, any further upward movement may remain capped near the $49.35–$49.40 region.
A sustained strength beyond this resistance could shift the bias in favor of bullish traders. The subsequent uptrend has the potential to lift XAG/USD towards the $50.00 psychological level, which also coincides with the 50% Fibonacci retracement level. Momentum could extend further towards the $50.55–$50.60 intermediate hurdle, en route to the $51.00 mark and the $51.20 region, corresponding to the 61.8% Fibonacci retracement level.
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https://bitcoinethereumnews.com/finance/xag-usd-seems-vulnerable-below-49-35-49-40/