An upward correction may start.

On the 4-hour chart, the pair is in a strong downward trend. At present, the price is trying to rebound from the level of 14.12 and strengthen to 14.44 and 14.64 (23.6% correction).

The daily chart shows a more interesting picture. The price has tested the level of 14.13 (100.0% correction). This level is seen as a key level, the breakdown of which may lead to a decline to 13.85 and 13.50. However, the price is more likely to rebound and grow to the levels of 14.40, 14.70 and 14.89 (61.8% correction). It should be noted that corrections for the short-term and medium-term trends have concentrated in the area of 14.89-14.96 and made it a very strong resistance.

Trading tips

At present, long positions seem to be more preferable and can be opened from the level of 14.40 with targets at 14.70, 14.89 and stop-loss at 14.10.

Alternative scenario

Short positions can be opened if the price consolidates below the level of 14.13 with targets at 13.85, 13.50 and stop-loss at 14.30.

XAG/USD: Fibonacci analysis

XAG/USD: Fibonacci analysis

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