Silver regains positive traction on Wednesday and reverses a major part of the overnight losses. 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.
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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 favor 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.