An upward correction is likely.

On the 4-hour chart, the price grew to the level of 14.07 (50% correction). Further growth is possible to the levels of 14.14 (61.8% correction) and 14.24 (23.6% correction for the medium-term trend). If price rebounds from the level of 14.07 it is likely to fall along the 61.8% fan line towards 13.99 (38.2% correction) and 13.90 (23.6% correction).

On the daily chart, the price rebounds from the 38.2% fan line. At present, the pair broke out the level of 14.00 and next targets seems to be at 14.24 (23.6% correction) and 14.60 (38.2% correction).  In case of a reverse, the price can fall to 13.66.

Trading tips

Long positions can be opened after the price consolidation above the level of 14.07 with targets at 14.14, 14.24 and stop-loss at 14.00.

Alternative scenario

Short positions can be opened after the price consolidation below the level of 13.99 with targets at 13.90, 13.76 and stop-loss at 14.06.

XAG/USD: Fibonacci analysis

XAG/USD: Fibonacci analysis

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