Silver Price Analysis: XAG/USD clings to gains near two-day tops, comfortably above $27.00

Silver edged higher for the second straight session and moved further away from weekly lows.
The set-up seems tilted in favour of bullish traders and supports prospects for additional gains.
Sustained weakness below the $26.70 confluence support will negate the constructive outlook.

Haresh Menghani FXStreet

Silver reversed an intraday dip to the $26.80 region and is now looking to build on the overnight rebound from one-week lows. The white metal turned positive for the second straight session and shot to two-day tops, around the $27.30 region during the early European session.

Looking at the technical picture, the XAG/USD has been trending higher along an upward sloping channel extending from YTD lows, around the $23.80-75 region touched on March 31. The recent pullback from the $27.65-70 region stalled near the lower boundary of the mentioned channel.

The emergence of some dip-buying near the trend-channel support and the subsequent positive move favours bullish traders. That said, repeated failures near the 61.8% Fibonacci level of the $30.07-$23.78 downfall warrant some caution before positioning for any strong gains.

From current levels, any further positive move might continue to confront stiff resistance near the $27.65-70 region. A convincing breakthrough should push the XAG/USD beyond the $28.00 mark, towards challenging the trend-channel hurdle near the $28.25-30 supply zone.

On the flip side, weakness below the $27.00 mark is likely to be limited by the trend-channel support, around the $26.80 region. This coincides with 100-period SMA on the 4-hour chart, which if broken decisively will shift the near-term bias in favour of bearish traders.

The next relevant support is pegged near the $26.15-10 area (38.2% Fibo.), below which the XAG/USD might turn vulnerable to break below the $26.00 mark. This will eventually expose the $25.00 psychological mark, with some intermediate support near the $25.30-25 zone (23.6% Fibo.).

XAG/USD 4-hour chart

Technical levels to watch

XAG/USD

Overview
Today last price	27.19
Today Daily Change	0.10
Today Daily Change %	0.37
Today daily open	27.09

Trends
Daily SMA20	26.54
Daily SMA50	25.85
Daily SMA100	26.18
Daily SMA200	25.66

Levels
Previous Daily High	27.24
Previous Daily Low	26.72
Previous Weekly High	27.68
Previous Weekly Low	25.81
Previous Monthly High	26.64
Previous Monthly Low	24.25
Daily Fibonacci 38.2%	27.04
Daily Fibonacci 61.8%	26.92
Daily Pivot Point S1	26.79
Daily Pivot Point S2	26.5
Daily Pivot Point S3	26.27
Daily Pivot Point R1	27.32
Daily Pivot Point R2	27.54
Daily Pivot Point R3	27.84

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

USD/JPY hovers below 160.50 intervention zone ahead of FOMC decision

USD/JPY remains below the 160.50 intervention zone in the Asian session on Wednesday. Despite the BoJ's rate hike to its highest level since 1995, Japan's borrowing costs remain significantly lower than the US, undermining the Japanese Yen. However, thpair US Dollar remains on the back foot amid the optimism over the US-Iran peace deal and ahead of the Fed policy decision, weighing on the pair.

AUD/USD holds steady above 0.7050; looks to Fed for fresh impetus

AUD/USD is consolidating above mid-0.7000s in the Asian session on Wednesday as traders await the outcome of a two-day FOMC meeting due later in the day. In the meantime, the optimism over an interim peace deal between the US and Iran keeps the US Dollar bulls on the defensive. This, along with the RBA's hawkish pause on Tuesday, acts as a tailwind for the pair.

Gold holds below 200-SMA as traders await Fed rate-call

Gold preserves weekly gains registered over the past two days, though it remains below a technically significant 200-day SMA through the Asian session on Wednesday. Traders now seem hesitant and are keenly awaiting the highly anticipated Fed rate decision before placing fresh directional bets. In the meantime, the US-Iran interim peace deal keeps the US Dollar on the defensive, acting as a tailwind for the bullion.

Coinbase outlines 'Everything Exchange' vision with planned tokenized stocks and AI advisor

Crypto exchange Coinbase unveiled a broad slate of new products on Tuesday, outlining plans to expand into tokenized equities and AI-powered investment tools in its pursuit of becoming an "Everything Exchange." A centerpiece of the roadmap is Coinbase's planned launch of tokenized US equities for customers outside the United States.

The most important event will be the Fed meeting with Mr. Warsh now in charge

The most important event will be the Fed meeting on Wednesday, with Mr. Warsh now in charge. As more than one analyst points out, the case for holding rates the same is strengthened by the Iran deal and the prospect of the Strait re-opening, although nobody thinks Warsh can marshal enough doves to do a cut this time.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.