- Silver trades sideways on Wednesday, lacking clear intraday direction within a consolidative range.
- The technical outlook remains bullish, suggesting potential for further upside momentum.
- A decisive drop below the key 100-day SMA support could invalidate the positive bias.
Silver (XAG/USD) struggles to extend its rebound from the $31.25 area—its lowest level in over a week—while consolidating in a narrow range during the first half of Wednesday’s European session. The white metal remains below the $32.00 mark, as traders await the release of the US Consumer Price Index (CPI) data before making decisive moves.
From a technical standpoint, the recent breakout above the 100-day Simple Moving Average (SMA), coupled with bullish signals from daily chart oscillators, suggests that XAG/USD remains biased toward the upside. However, repeated failures to sustain gains above the $32.30 resistance indicate hesitation among buyers. A decisive break beyond this level would reinforce the bullish momentum and open the door for further gains.
Key Resistance Levels
- A sustained move above $32.30 could drive silver toward the monthly high of $32.65, aligning with the 61.8% Fibonacci retracement of the October-December decline.
- Further upside potential could see XAG/USD test the $33.00 psychological level, with an extended rally targeting the $33.50 zone.
- A continuation of bullish momentum might push silver toward the $34.00 level, with the next major hurdle at $34.45 and the multi-year high near $35.00.
Key Support Levels
- Immediate support lies at the 100-day SMA near $31.25.
- A break below this level could see silver decline toward $31.00, shifting the short-term outlook in favor of sellers.
- Further downside could lead to a drop toward the $30.25 support (23.6% Fibonacci retracement) and the $30.00 psychological level.
- A deeper pullback might expose the $29.55-$29.50 horizontal support zone.
Silver’s near-term direction remains uncertain as traders await the US CPI report, which could influence Federal Reserve rate expectations and impact XAG/USD. While the broader technical setup favors further gains, a failure to hold above the 100-day SMA could shift sentiment in favor of the bears.
Sliver daily chart
