Bulls correcting sharp sell-off, eyes on US dollar softness

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  • Silver is in the bearish territory after extending the downside. 
  • Bulls are looking for a deeper correction to test bearish commitments.

As per the prior analysis, Silver Price Analysis: Bears taking over and test bullish commitments at key support,  silver was finally pushed over the edge on Tuesday.

Prior analysis, daily and 4-hour charts

Live market analysis, 4-hour chart

As illustrated, the price indeed fell from the projected resistance area in a retest of the H&S neckline and trendline support. 

Meanwhile, the price of silver has corrected close to the 38.2% Fibonacci retracement of the hourly bearish drop.

However, there could be some more corrective behaviour to follow for the session ahead should the greenback continue to slide where the DXY now meets hourly resistance in the 91.50s:

DXY 15-min chart

Overall, XAG is deeper into bearish territories for the longer term as it grapples with weekly support.

However, failure to stay below 25 this week, as the 23.6% Fibo, could be bullish for the near term and leave prospects of a 50% mean reversion on the map at 25.63 for the near future:

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