XAGUSD Decision time
Silver has started to turn lower in early Wednesday trade, despite the metal staging a strong recovery back towards the $26.10 resistance area yesterday. The Parabolic SAR indicator shows that the trend on the four-hour time frame remains bullish while the metal trades above the $25.40 level. Bulls must defend this key support zone or the metal faces further losses towards $24.00.
XAGUSD is only bullish while trading above the $25.40 level, key resistance is found at the $26.10 and the $26.80 levels.
If XAGUSD trades below the $25.40 level, sellers may test the $24.80 and $24.00 support levels.