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- XAG / USD bulls are keen on the upside move and aiming for a 50% mean reversal.
- The US dollar is rising as a potential risk to the bullish playbook.
Silver will be bid again on Thursday, extending its rebound into a series of higher daily highs for the week.
At the time of writing, XAG / USD is trading 0.3% higher after rising from a low of $ 26.16 to a high of $ 26.39 and moving on.
The US dollar on this day is also higher than the previous day’s closing price, as measured by the DXY index.
At the time of writing, the DXY index, which measures the greenback against a basket of six currencies, was up 0.3% at 92.641. The index fell to 92.272 earlier in the session but has hit a high of 92.694 so far.
DXY made up some of the ground lost in the previous session that benefited silver after Federal Reserve Chairman Jerome Powell testified before Congress.
Powell said there is no rush to move to tighter monetary policy after the pandemic.
Fed chief Jerome Powell said he was confident the recent price hikes are linked to the country’s reopening after the pandemic and will wear off.
Powell said the Fed should continue to focus on getting as many people back to work as possible.
Meanwhile, the US dollar found some support on Thursday as the number of Americans new applications for unemployment benefits fell last week, falling to a 16-month low.
There are signs that the labor market is steadily gaining momentum.
In addition, rising coronavirus cases kept the dollar up while Asia struggled with the variant and subsequent lockdowns.
XAG / USD technical analysis
Tech-wise, there is a prospect of retesting the daily highs at 26.77 and a lower 50% mean reversion correction on the June sell-off near 26.91.
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