FX.co ★ XAG/USD, SILVER

Silver (XAG/USD) bounces slightly off its low of $60.30, the lowest since August 5, hit earlier Tuesday. However, the rally fails to gain much traction as the precious metal continues to trade within positive territory in the early European trading hours. The white metal is trading at $61.00, up more than 0.50% for the day. As for technical indicators, the RSI is near oversold levels at 28, suggesting the downside move is getting a bit overdone and triggering intraday short covering. Additionally, MACD remains negative and does not indicate a reversal at this stage. Also, XAG/USD stays comfortably below the 200 EMA of $64.64. Therefore, any upward push should meet initial resistance near the $61.00 psychological round number. Any follow-up buying could set the stage for an advance to the $61.80-$61.85 intermediate resistance level, before XAG/USD climbs higher past the $62.00 level and heads toward the $62.40-$62.45 horizontal support-breakthrough level. The latter is expected to serve as an important pivot point, and any sustained push beyond it will help solidify the bullish view on the white metal. On the downside, there is no support, and traders may want to see a breakdown below the $60.00 psychological round number to signal the start of another leg of price action. Any convincing breakdown would help signal a move down to the $59.40-$59.35 support level before XAG/USD heads lower toward the $59.00 level. Any further losses in the white metal could prompt the bears to target the August monthly lows around the $56.60-$56.55 range, with some intermediate support at the $57.00 round number.