Silver Price: XAGUSD Rebounds From $24.00 Zone Following Risk-On and a Mixed US Dollar Outlook

XAGUSD Price Analysis – January 18

Silver (XAG/USD) prices are on the move this week as the white metal rebounds from its recent low of$24.00. Following its price action from the $24.77 opening price, XAGUSD has posted a recent high of $25.16 early in the European session. USD’s rally during the European morning session was suppressed by risk-on and a mixed US dollar.

Key Levels
Resistance Levels: $30.00, $27.50, $26.00
Support Levels: $24.50, $23.50, $21.89
XAGUSD Long term Trend: Ranging
The ascending trendline support and the horizontal support line which currently coincides sit as support at the $24.00 level and acts as a solid base to the price action over the past few hours, with the moving average 5 at $25.10 acting as solid resistance.

The price of XAG continues to trade well within known levels, there is decent resistance in the $26.00 region, while to the downside, the bottom of the recent range comes into play just around the $23.50 level. At present, XAGUSD is ranging and the bulls may attack further north of the $25.00 level and beyond.
XAGUSD Short term Trend: Ranging
As seen on the 4-hour chart, silver appears to be trapped within the channel at the $24.86 and $26.00 level. In the event, the price channel holds intact XAGUSD is likely to gain support from 4 hours MA 5 near the $24.86 level and return to extend gains against the US Dollar in the short term.

A possible upside target is the upside range at $26.00 and $27.50 levels, in the meantime, it is unlikely that bears could prevail in the market. That said, a sustained break below will be seen as the first signs of bullish exhaustion and turn the pair vulnerable to fall further towards challenging the key $24.50 psychological mark.

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