Silver meets resistance, focus is on the 38.2% Fibo
- Silver is correcting from the daily highs and eyes are on the downside.
- Bears can target a 38.2% Fibonacci retracement t this juncture.
At the time of writing, XAG/USD is trading at $26.51 and down 0.12% as it continues to correct from the resistance on the long-term charts.
Dollar weakness helped precious metals to rally overnight and the bid in the US stock market on Wednesday confirmed the positive correlation between the white metal and Wall Street.
XAG/USD climbed from a low of $25.76 to a high of $26.64. The gold to silver ratio was also firmly lower, ending on Wall Street down some 1.90%.
Should the rebound on Wall Street gather steam over the coming sessions, then silver would be expected to keep up with the pace.
Meanwhile, the Federal Reserve will be of interest next week with respect to the greenback and US yields.
The dollar could come under fire again if investors continue to reconsider how long it might take before inflation forces the Federal Reserve to tighten monetary policy.
Silver technical analysis
As per the prior analysis, Silver Price Analysis: Bulls testing bear's commitments at daily resistance, the price has extended to the upside from a 38.2% Fibonacci retracement of the prior daily bullish impulse and the confluence of the bullish 10 & 20 EMA crossover.
The rally closed the New York day a touch below a -61.8% Fibonacci retracement target of the prior daily correction at $26.72 meeting the supply zone of early March support.
However, a healthy correction could be on the cards in the forthcoming sessions.
A 38.2% Fibo retracement of the rally meets perfectly with the prior daily highs of $26.30 on the downside.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
