XAG/USD bulls target break above $76.75 confluence hurdle

Silver (XAG/USD) is seen building on the previous day’s bounce from the vicinity of a nearly two-week low, around the $73.00 neighborhood, and gaining positive traction for the second straight day on Thursday. The white metal climbs above mid-$76.00s during the Asian session, though it remains below the weekly high set on Tuesday.

From a technical perspective, the XAG/USD currently trades just below the $76.75 confluence hurdle – comprising the 100-hour Simple Moving Average (SMA) and the 23.6% Fibonacci retracement level of the recent downfall from the monthly peak. A sustained strength beyond the said barrier will be seen as a fresh trigger for bullish traders and pave the way for a further near-term appreciating move.

Constructive momentum indicators on the 1-hour chart hint that selling pressure is moderating rather than accelerating. The Relative Strength Index is near 57, and the Moving Average Convergence Divergence (MACD) line is holding slightly above zero. Hence, a clear breakout through the aforementioned hurdle could lift the XAG/USD to the 38.2% Fibo. at $79.21 and then the 50% level at $81.14.

On the downside, the main structural floor emerges at the cycle low and Fibonacci anchor around $72.97, where buyers would be expected to show more determined interest if the current pullback extends.