Silver (XAGUSD) is trading slightly higher as the New York session kicks in this Monday. Trading is generally muted as banks in the US and Canada observe a bank holiday (Columbus Day in the US). The XAGUSD pair was heavily pressured in Thursday’s trading last week as risk-on sentiment pressurized the pair. However, the risk-on sentiment has eased this Monday and with it has come some limited upside for silver price.
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Silver (XAGUSD) Intraday Outlook
The XAGUSD pair trades currently at 17.612, which is the resistance provided by the 38.2% Fibonacci level (swing low of May 28 to swing high of Sept 4).
Support lies at 17.012 (50% Fibonacci level). This is the downside target for XAGUSD if price fails to breach the 17.61 resistance price level to the upside. Additional pressure on XAGUSD may also come from risk-on sentiment, if this were to hit the market once more.
To the upside, ability to overcome the resistance posed by the 38.2% Fibonacci level would open the door to the 18.44 price level. However, this price push also has to contend with resistance posed by the descending trendline that connects the tops from the Sept 4 swing high.
Either way, price is in a symmetrical triangle and we may be in for a major move when the triangle resolves.