XAG/USD outlook: Silver surges to new record high, psychological $70 barrier in sight
XAG/USD
Silver advanced over 4% and hit new record high ($66.51) on Wednesday, as demand for precious metals gained impetus after US data pointed to further softening in the US labor market that revived expectations for more dovish Fed’s stance on monetary policy.
Fresh gains broke through two round-figure barriers ($65 and $66) and signaled continuation of larger after a three-day consolidation.
Bulls eye targets at $67.23 and $69.36 (Fibo projections 238.2% & 261.8% respectively) with psychological $70 barrier coming in focus.
Meanwhile, overbought daily studies suggest that bulls may take a breather for consolidation / limited correction and position for fresh push higher as all key drivers (geopolitical / monetary policy / industrial demand) remain firmly in play
Dips should be ideally contained at $64.50/00 zone to keep bullish structure intact.
Res: 66.00; 66.51; 67.23; 68.00.
Sup: 64.64; 64.30; 64.00; 63.75.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
