A fall continuation is likely.

The price fell below the level of 15.28 (23.6% Fibonacci correction on the 4-hour chart) and reached 38.2% Fibonacci arc for the short-term trend. The breakdown of the arc would allow the price to fall to 15.12, 15.00 and 14.87. However, the growth possibility along the arc towards 15.28 cannot be dismissed completely. This is the key level for bulls as both the short-term and medium-term 23.6% corrections stand here. The breakout of this level would allow the pair to grow to 15.54 and 15.73.

On the daily chart, the pair is trading inside the triangle, formed with 23.6% correction and arc for the short-term trend. The arc serves as the resistance level while the price is trying to breakdown the level of 15.26 (23.6% correction). If it succeeds, the fall may continue towards 14.90 and 14.48. If the price breaks out the 23.6% arc from bottom to top, the pair would grow towards 15.73.

Trading tips

Open short positions below the level of 15.12 with targets at 15.00, 14.87 and stop-loss at 15.25.

Alternative scenario

Long positions can be opened after the price consolidation above the level of 15.28 with targets at 15.54, 15.73 and stop-loss at 15.15.

XAG/USD: Fibonacci analysis

XAG/USD: Fibonacci analysis




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