Silver (XAG/USD) attracts some buyers during the Asian session on Wednesday and moves away from a one-week low, around the $75.50 region, which it touched the previous day. The white metal currently trades near mid-$77.00s, up just over 1% for the day, though the mixed technical setup warrants caution before placing aggressive directional bets.
The XAG/USD holds just above the 200-period Simple Moving Average (SMA) on the 4-hour chart but is capped by the 23.6% Fibonacci retracement of the recent goodish recovery from the $61.00 mark, or the March swing low. This leaves the near-term tone neutral to slightly bearish. The modest cushion provided by the 200-SMA suggests underlying demand on dips.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains below zero with a negative reading, and the Relative Strength Index (RSI) hovers near 44. Both the momentum indicators hint that recovery attempts may struggle while the XAG/USD trades under the nearby Fibonacci barrier.
A sustained strength beyond the 23.6% retracement at $77.76 should pave the way for additional gains. Further upside hurdles, however, only emerge toward the cycle high reference at $82.90. On the downside, initial support is seen at the 200-period SMA at $76.58, followed by a more substantial Fibonacci cluster at the 38.2% retracement near $74.59.
A convincing break below the latter would expose deeper supports at $72.02 and $69.46, corresponding to the 50.0% and 61.8% retracements of the broader upswing.
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