XAG/USD 1H Chart: Descending channel in sight
Silver has been appreciating against the US Dollar after the currency pair reversed from the lower boundary of a medium-term descending channel located circa 14.00.
As apparent on the chart, the exchange rate is re-testing the upper channel line near 14.65. From a theoretical point of view, the pair should reverse and drop to the 200-period (4H) SMA in the nearest future, currently located at 14.40. Technical indicators for the 1D and 1W time-frames also suggest that bearish momentum might occur soon.
If given channel does not hold, it is expected that a breakout could occur. In thic case, potential upside target might be the monthly S1 at 14.90.
As apparent on the chart, the exchange rate is re-testing the upper channel line near 14.65. From a theoretical point of view, the pair should reverse and drop to the 200-period (4H) SMA in the nearest future, currently located at 14.40. Technical indicators for the 1D and 1W time-frames also suggest that bearish momentum might occur soon.
If given channel does not hold, it is expected that a breakout could occur. In thic case, potential upside target might be the monthly S1 at 14.90.