- XAG / USD was up more than 3% on Tuesday.
- RSI on the four-hour chart remains above 50 early in the US session.
- The next short-term target for silver could be seen at $ 26.20.
The XAG / USD it tested the $ 25 level on Monday, but managed to close the day above that critical support. With the dollar under heavy selling pressure on Tuesday, the pair gained traction and rose to a daily high of $ 25.98 early in the US session. At time of writing, silver was up nearly 3% on the day at $ 25.85.
Silver technical outlook
The Relative Strength Index (RSI) indicator on the four-hour chart rose above 50 with Tuesday’s rally, suggesting that bullish momentum is gathering strength and there is more room to the upside before XAG / USD becomes oversold. Also, the pair broke above the 20 SMA on the same chart, confirming the bullish bias.
On the upside, the initial hurdle sits at $ 26.20 (Feb 25 Fibonacci 38.2% retracement – March 5 dip) before $ 26.50 (Fibonacci 50% retracement) and $ 26.80 (100-period SMA, 200-period SMA).
Supports, on the other hand, could be seen at $ 25.40 (20-period SMA) and $ 25 (psychological level, static support).
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