Silver (XAG/USD) has found resistance at the weekly trend line that has guided the metal lower from its highs in the 50 region (Figure 1). The pair has drafted a doji and we will be looking lower towards a test of the channel bottom (intermediate targets of 32 and 30) until the highs formed at 37.5 are intact. A look at the daily charts indicates that the high of the weekly doji marks a failure at the 61.8% retracement of the drop from the 44 level. This region is also a former congestion zone. We are not issuing an official trade call on this pair at this point in time but interested traders may look for short opportunities against the 37.5.
Figure 1: Silver (XAG/USD) Weekly Chart
Figure 2: Silver (XAG/USD) Daily Chart
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