Silver Price Forecasts: XAG/USD hesitates at $74.00 as risk appetite ebbs

LONDON (April 9) Silver XAG/USD) is looking for direction at $74.00 on Thursday, after pulling back from Wednesday’s highs at $77.65. The precious metal lost its shine as the market turned cautious with the first cracks emerging in the US-Iran ceasefire deal.

Iranian authorities complained on Wednesday about violations of the ceasefire agreement, after a massive attack killed 182 people in Lebanon, and closed the Strait of Hormuz again. The US and Israel said that Lebanon was not in the deal, and US President Donald Trump warned Iran of further “action” if the terms of the deal are not complied with.

The peace process, nevertheless, remains alive. Tehran and Washington announced that they will send respective delegations to start direct negotiations in Pakistan this weekend. Investors, however, remain wary of the fragility of the ceasefire, which is keeping the US Dollar buoyed and demand for precious metals subdued on Thursday.

Technical Analysis: Nervous consolidation at the channel bottom

XAG/USD is trading just above the rising channel floor, with 4-hour indicators showing a lack of clear bias. The Relative Strength Index (RSI) is flat around the 50 line, suggesting a balanced momentum, and the Moving Average Convergence Divergence (MACD) is marginally below zero, hinting at a moderate bearish pressure.

A confirmation below the mentioned trendline support, now at $73.25, would expose Tuesday´s low, at $68.20, ahead of the March 23 low, at $61.00. The measured target of a potential Bearish Flag formation is the $52.00 area.

On the topside, ithe 50% Fibonacci retracement of the late-March downtrend, at $78.95, has been capping bulls this week. Further up, the 61.8% retracement at $83.15, and the channel top, at $84.50, are the next targets.

FXStreet