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The US dollar finally fell for the first time this week, allowing silver to break above the $ 26 mark and likely break the support level above $ 26.20. However, the greenback is still considered a safe-haven currency, which gives it power in the current market.
Silver is trading above $ 26 again
The XAG / USD pair has seen a wild ride so far this week. The pair hovered between the $ 25 and $ 26 regions for most of the week. The XAG / USD pair closed yesterday and traded below USD 26 after breaking above that level during the Asian trading session.
That didn’t happen today, however, as Silver appears to be in control right now. After opening the day at $ 25.931, silver stayed above $ 26 from the Asian trading session to the start of the North American session.
At the time of this writing, the XAG / USD pair is well above the 26.00 mark and is heading towards the 26.20 level soon. The technical indicators show that silver is rebounding from lower levels and may regain some of its previous positions.
Sustained rally could push XAG / USD above USD 26
The XAG / USD pair could attempt to regain previous highs above USD 27. For this, however, the precious metal would have to start an ongoing run. The problem is, the greenback is doing great right now and may not lose that easily.
The Fed’s monetary policy report showed that the upside risks to the inflation outlook have increased in the short term. That news didn’t reflect much in the performance of the US dollar, however, an indication of how strong the greenback has become as a safe haven.
If silver continues its upward momentum, an uptrend towards the $ 26.45-50 region could take place in the next trading sessions. A sustained rally above this level will enable the commodity to hit the $ 26.75-80 region.
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