Silver Price Tests Key Channel – XAG USD Bulls Headed for $70

Price has been consolidating in a 30-minute time frame (XAGUSD) in a price channel that is flattening on the upside, with a breakout above the recent lows being a possible scenario. $65 to $67.58, the main decision zone of the current move, is denoted on the chart.

Another quick chart indicates that buyers responded to the removal of liquidity by price sweeping below an earlier demand area. In the meantime, intraday volatility data indicates that silver can sometimes post its greatest price swings around significant global markets’ open.

XAGUSD Recovery Meets Descending Channel

The first XAGUSD chart is rebounding from a recent swing low and heading back into the descending channel resistance.

But there are only 3 visible waves in the recovery as of now. The Elliott Wave structure of the chart can still be a corrective rebound and not a new upward trend.

The analyst’s chart maps lower Fibonacci areas near $62.47, $60.58, and $57.92. These levels are lower than the recent recovery and make up the chart’s deeper retracement area. Source: MCO via X

Price will need to move through the $65 to $67.58 range charted on the graph, however. The top end of that range is also in the midst of a downward trend line.

If the zone could be sustained, the short term structure displayed on the chart would change. If it failed to pass, it would leave XAGUSD in the big broader channel.

Silver Rebounds After Liquidity Sweep

Another analyst’s 30-minute chart shows another perspective of the recent recovery.

Silver started from an equal-high level and then dropped precipitously to a highlighted zone of demand. Price then broke down below the local low and finished a liquidity sweep, as per the chart.

There was a swift response from that area, which was under pressure. XAGUSD has then recovered and climbed back to the old intraday range.

The chart thus depicts two liquidity events on opposite sides of the structure. Price initially liquidated through the previous highs, and then it swept liquidity below the lows. Source: Trader Via X

The drop in price from the lower sweep has come back in the latest rebound, but price remains below the earlier upper supply area. That ties the wider short-term structure in with the resistance demonstrated in the first chart.

A continuation towards the previous highs will bring XAGUSD back towards the resistance range of $65-$67.58. If the recent range is rejected again, it will remain unchanged.

US Session Brings Higher Silver Volatility

Meanwhile, the analyst chart is specific to times of XAGUSD’s biggest intraday price swings, not levels.

It has a very high-low range, with a volatility surge at the Shanghai open. This time frame is indicated on the chart as the one with maximum volatility.

Activity is also high upon the opening of European markets, but this tendency is more pronounced during the US session.

The charts reveal the highest levels of volatility during periods following major US economic announcements and the New York Stock Exchange opening bell. There are many high-low ranges occurring in this time frame. Source: Hugo Via X

The chart also shows a number of volatility spikes that occurred quickly around the US window. The actions occur when short-term breakouts can turn around easily.

In XAGUSD, it focuses on the behavior of prices around the channel resistance when trading in the active time zone of the United States.

The technical analysis thus focuses on the same short-term time frame. Silver is recovering, and the channel and the $65-$67.58 range are two more aspects of the next structural level.