#XAGUSD @ 19.527 Silver regains positive traction on Wednesday and reverses a major part of the overnight losses. (Pivot Orderbook analysis)

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• Silver regains positive traction on Wednesday and reverses a major part of the overnight losses.
• The technical set-up supports prospects for a breakout through a descending trend-line resistance.
• Sustained weakness below the $18.80-$18.75 region is needed to negate the constructive outlook.

The pair currently trades last at 19.527.

The previous day high was 19.58 while the previous day low was 19.06. The daily 38.2% Fib levels comes at 19.26, expected to provide support. Similarly, the daily 61.8% fib level is at 19.38, expected to provide support.

Silver attracts fresh buying on Wednesday and continues gaining traction through the first half of the European session. The white metal reverses the previous day’s modest losses and is currently trading near the daily peak, around mid-$19.00s.

Looking at the broader picture, the XAG/USD has been oscillating in a familiar range over the past one-and-half week or so and remains below a downward sloping trend-line extending from the May swing high. The said barrier, currently around the $19.75 region, should act as a key pivotal point and help determine the next leg of a directional move for the commodity.

Meanwhile, positive technical indicators on the daily chart support prospects for an eventual breakout through the aforementioned hurdle. The XAG/USD might then surpass the $20.00 psychological mark and test the 100-day SMA, around the $20.25 region. The momentum could further get extended towards the $20.50 intermediate resistance en route to the $21.00 mark.

On the flip side, any meaningful pullback might continue to find decent support near the $19.00 mark ahead of the $18.80-$18.75 region. A convincing break below will shift the near-term bias back in favour of bearish traders and make the XAG/USD vulnerable to accelerating the fall to the $18.45-$18.40 support. Spot prices could eventually drop to the $18.00 round figure.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 19.51 at the time of writing. Pair opened at 19.28 and is trading with a change of 1.19 % .

The pair is trading above its 20 Daily moving average @ 18.83, above its 50 Daily moving average @ 19.27 , below its 100 Daily moving average @ 20.28 and below its 200 Daily moving average @ 22.1

The previous day high was 19.58 while the previous day low was 19.06. The daily 38.2% Fib levels comes at 19.26, expected to provide support. Similarly, the daily 61.8% fib level is at 19.38, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.04, 18.79, 18.52
• Pivot resistance is noted at 19.55, 19.83, 20.07

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