Silver price action got an upside push due to dip-buying on Tuesday after the USD continued to experience a tinge of weakness. This move has enabled the XAG/USD pair to transcend the $27 mark.
Rising long-term bond yields on the day did not seem to affect silver price action, unlike gold, where a supply wall has prevented further upside. A look at the technical picture of silver indicates that the white metal is trading within the ascending channel, thus retaining the upside bias on the pair. With the channel’s lower border crossing the horizontal price level at $26.86, it is safe to say that bulls continue to hold the keys to further price action as long as this price mark stays intact.
Silver price peak for 2021 was last seen at the start of February and stood at $29.00. Bulls would be hoping for a return to these levels, especially as the Fed’s stance on interest rates and tapering continues to favour dollar weakness.
Technical Outlook: Silver Price
Silver price is now testing the upper boundary of the ascending channel at its junction with the 27.502 resistance. A break above this level allows the XAG/USD pair to hit the 28.073 resistance mark. 28.359 (23 February high) and the psychological resistance at 29.006 (1 February high) remain additional upside targets.
On the other hand, a rejection at 27.502/upper channel edge allows for a pullback that may target 26.868. This is where the lower edge of the channel lies as well. A breakdown of this border allows 26.624 and 26.325 to become additional targets to the south. 26.034 and 25.386 (12 March and 15 April low) may also come into the picture if the decline is extensive.