#XAGUSD @ 18.173 Silver reverses an intraday dip and refreshes its daily high during the early European session. (Pivot Orderbook analysis)

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• Silver reverses an intraday dip and refreshes its daily high during the early European session.
• Bulls still need to wait for a move beyond the ascending channel before placing fresh bets.
• Weakness below the $17.85 area will make the XAG/USD vulnerable to retesting the YTD low.

The pair currently trades last at 18.173.

The previous day high was 18.59 while the previous day low was 17.95. The daily 38.2% Fib levels comes at 18.19, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.34, expected to provide resistance.

Silver attracts some dip-buying near the $17.85 area, or the weekly low set earlier this Wednesday and refreshes the daily peak during the early part of the European session. The white metal is currently placed near the $18.20-$18.25 region, still well below a one-week high touched the previous day.

The XAG/USD is currently flirting with a resistance marked by the top boundary of a downward sloping channel extending from the August monthly swing high. Sustained strength beyond will be seen as a fresh trigger for bullish traders and pave the way for some meaningful upside in the near term.

The XAG/USD might then accelerate the momentum towards the next relevant resistance, just ahead of the $19.00 round figure. The said handle coincides with the 100-period SMA on the 4-hour chart, which if cleared decisively will suggest that spot prices have formed a bottom near the $17.55 area.

Some follow-through buying has the potential to lift the XAG/USD towards the 200-period SMA on the 4-hour chart, currently pegged near the $19.40-$19.45 region. The recovery momentum could further get extended and allow bullish traders to aim back to reclaim the $20.00 psychological mark.

On the flip side, the $18.00 mark seems to act as immediate support ahead of the daily low, around the $17.85 region. Failure to defend the said support levels will expose the YTD low, around the $17.55 area touched last Thursday en-route the ascending channel support, around the $17.00 mark.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 18.19 at the time of writing. Pair opened at 18.02 and is trading with a change of 0.94 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.16, 50 SMA 19.34, 100 SMA @ 20.71 and 200 SMA @ 22.26.

The previous day high was 18.59 while the previous day low was 17.95. The daily 38.2% Fib levels comes at 18.19, expected to provide resistance. Similarly, the daily 61.8% fib level is at 18.34, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.78, 17.54, 17.14
• Pivot resistance is noted at 18.42, 18.82, 19.06

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