Silver is being lapped up by the bulls looking for a bargain
|- Silver bulls are stepping as the weekend approaches.
- Bulls seek a significant upside correction towards liquidy.
Overnight, in the aftermath of the Federal reserve, XAG/USD fell from a high of $27.24 and landed heavily on a low of $25.77 marking one of the biggest falls for the year so far.
At the time of writing, XAG/USD is trading at $26.01 and has travelled between a low of $25.91 and a high of $26.01 as the bulls continue to buy into the low hanging fruit.
There was no let-up in the US dollar on Thursday, the day after the US Federal Reserve switched up its rhetoric to such an extent that markets, on the knee-jerk, priced in rate hikes to come sooner than first expected and as if tapering by August was a done deal.
The price of silver was down over 4% by the end of the North American session, losing its footing in the wake of US dollar strength, but bulls started to step in during the New York.
Meanwhile, the bond market started to paint a different story on Thursday which could give rise to a sharp correction in the US dollar, subsequently supporting precious metals which have been sold off to extreme weekly technical levels.
For instance, the US 10-year yield fell sharply from 1.5940% to a low of 1.4690%, ending the day down -4.00%. The yield on the US 30-year bond also fell to its lowest level since late February. This is a sign that the market is clearly of the conviction that the rise in inflation is transitory.
XAG/USD technical analysis
From a technical standpoint, the markets have already begun to take profits on the Fed drop.
Bulls are looking to take silver into liquidity around the $26.78 mark where the 38.2% Fibo of the daily bearish impulse is located.
Ther 61.8% and 50% are deeper in volume where the price could end up if the bears done pounce again soon.
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