FX.co ★ UFCworriers | XAG/USD, SILVER

XAG/USD is continuing its intra-day bounce attempt and getting closer to the weekly high, with the metal being traded in the vicinity of the $67.00 mark at the time of writing in the early European session on Wednesday. The current bounce comes amid rising short-term demand, while price action remains confined to a well-known trading range that has kept market moves in check over the past several days. Sideways consolidation means the previous upward attempt has not yet proven valid. Meanwhile, the approach of an important resistance level makes traders more cautious with their positions. Another factor that may play a crucial role is the US inflation report due to be released shortly. Technically, the 100-period Simple Moving Average (SMA) on the four-hour time frame remains the main roadblock for bulls and sits just below the $67.00 level. XAG/USD has struggled to break out above the aforementioned moving average, leaving the latest rally exposed to selling pressure. An upside breakthrough above the 100-period SMA on the four-hour time frame would not only signal an intraday rally for the bulls but also mark a breakout from the trading range, suggesting downside pressure on the currency pair may be losing momentum. Momentum indicators are now starting to support the rally, even though they are not yet offering strong signals of a full reversal to the upside. The Relative Strength Index (RSI) has risen back to the mid-50 range, showing the pair's momentum has stabilized after the prior weakness. The indicator shows no overbought conditions, meaning there is still scope for upside if buying pressure grows. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned positive after declining to a minor level. This indicates that bearish momentum is losing strength, although the move should be viewed cautiously since XAG/USD is trading below the key 100-period SMA. If buyers break the $67.00 resistance area, the $68.00 round number becomes relevant, as this level matches the month-high swing. This level can act as a selling zone if buyers become more active in pushing prices higher over an extended period. However, a break above $67.00 would weaken the prevailing bearish trend and support the current short-term positive bias. Nevertheless, buyers would first need to break the 100-period simple moving average. However, on the downside, the area between $65.40 and $65.30 is the first key level where buyers have secured support and formed the lower bound of the recent price range. A continuation of the range implies price has failed to break down for sellers, and the precious metal can consolidate, giving bulls a chance to push prices higher toward $67.00. A breach below $65.30 will shift the market advantage to bears, with the next level of interest around $63.35-$63.30 (monthly swing low). If it falls below $63.00, we can talk about testing support near $62.20. Generally, XAG/USD is trading within a clear range, with $67.00 as the main resistance level and $65.30 forming an immediate support line.