XAG/USD 1H Chart: Potential reversal south
Silver has been appreciating gradually against the US Dollar since the pair reversed from the lower boundary of a long-term descending channel located circa 14.10.
As apparent on the chart, the pair has already tested the upper channel line at 14.70. From a theoretical point of view, a reversal south occurs within the following trading sessions. Potential downside target is the Fibonacci 0.00% retracement at 13.95.
However, technical indicators suggest that this move might not be immediate, and the pair could re-test the upper channel line. It is unlikely that a breakout north occurs, as Silver is being pressured by the 55-, 100– and 200-hour SMAs 14.65.
USD/TRY 1H Chart: Potential breakout
The US Dollar has been depreciating against the Turkish Lira since the end of August. This movement has been bounded in a falling wedge.
Technical indicators for the 1W time frame suggest that a breakout north occurs in the nearest future and the currency pair surges towards the Fibonacci 23.60% retracement at 6.2973.
However, this advance might not be immediate as the exchange rate is being pressured by the 200-hour SMA at 5.4656 and the pair could decline to the support cluster formed by the weekly S2 and the monthly S1 near 5.2800.
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