The focus seems to be shifting away from geopolitical tensions so far this week, so can we see a return in risk-taking that might prop silver back up?
On its 4-hour time frame, XAG/USD is closing in on a newly-forming rising trend line connecting the lows since March.
I’m seeing a bit of confluence that could attract bulls at these levels, too!
Silver (XAG/USD) 4-hour Chart by TradingView
After last Friday’s flare up in Middle East attacks, market jitters appear to be subsiding now that retaliatory measures between Israel and Iran appear to be absent.
At the same time, the safe-haven dollar is returning some of its gains while market players brace for a fresh round of top-tier U.S. data points.
Is risk appetite about to make a comeback soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on silver and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Silver is closing in on a strong area of interest spanned by the trend line, 61.8% Fibonacci retracement level, 200 SMA dynamic support, and S3 ($26.41) that might convince bulls to charge again.
After all, the 100 SMA is still above the 200 SMA to suggest that the uptrend is more likely to gain traction than to reverse. In that case, XAG/USD could set its sights back up on the upside targets at R1 ($29.27) and R2 ($29.86) near the swing high.
Just make sure you keep an eye out for geopolitical headlines that might impact risk sentiment and trigger another round of USD buying!
The post Chart Art: Can Silver (XAG/USD) Resume Its Uptrend? first appeared on Investorempires.com.