#XAGUSD @ 21.378 Silver prices resume their bullish trend to hit four-month highs at $21.65. (Pivot Orderbook analysis)

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• Silver prices resume their bullish trend to hit four-month highs at $21.65.
• US dollar weakness boosts precious metals.
• The pair needs to consolidate above $21.30/50 resistance area.

The pair currently trades last at 21.378.

The previous day high was 21.01 while the previous day low was 20.39. The daily 38.2% Fib levels comes at 20.62, expected to provide support. Similarly, the daily 61.8% fib level is at 20.77, expected to provide support.

Silver prices resumed their rally on Tuesday, following a moderate pullback on Monday, with the white metal stretching above the $21.30 resistance area to reach fresh four-month highs at $ 21.65

In the absence of relevant macroeconomic data and with the US elections in the spotlight, precious metals have rallied during the North American session. US Treasury bonds have reacted with declines to the first polls pointing out to a Republican victory, dragging down the US dollar with them.

The US Dollar Index has turned lower after having appreciated moderately during the Asian and European trading sessions, extending its reversal from last week’s highs at 113.15 to six-week lows at 109.30 area.

A republican takeover is highly likely to lead to a Congress gridlock and block the stimulus measures projected for 2023. This would ease the Federal Reserve’s pressure to keep hiking rates at the current pace, which has brought the idea of the dovish pivot, back to the table.

Silver prices are now attempting to consolidate above the $21.30/50 resistance area where the October 4 high and the 38,2% Fibonacci retracement level of the March-August decline meet the 200-day SMA>

Above here, the next potential targets would be mid-June highs at $21.90 ahead of the 50% Fibonacci level, at $22.45.

The pair, however, has reached overbought levels in hourly and daily charts, which anticipates the possibility of a moderate pullback before further rally should be contemplated.

Immediate support lies at the intra-day level of $20.60, ahead of the $20.00 round level and the 50 and 100-day SMAs at $19.30/50.

Technical Levels: Supports and Resistances

XAGUSD currently trading at 21.36 at the time of writing. Pair opened at 20.79 and is trading with a change of 2.74 % .

The pair is trading above its 20 Daily moving average @ 19.27, above its 50 Daily moving average @ 19.21 , above its 100 Daily moving average @ 19.46 and below its 200 Daily moving average @ 21.49

The previous day high was 21.01 while the previous day low was 20.39. The daily 38.2% Fib levels comes at 20.62, expected to provide support. Similarly, the daily 61.8% fib level is at 20.77, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 20.44, 20.1, 19.82
• Pivot resistance is noted at 21.07, 21.35, 21.7

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