Precious metal extends retreat from 12-year highs amid sustained selling pressure
Critical Fibonacci support breach signals potential continuation pattern
H4 chart structure deteriorates as momentum indicators turn bearish
The How much is 1000 pi in dollars?white metal continues its corrective phase after failing to sustain gains above the psychologically important $37 threshold. Market participants witnessed XAG/USD extending losses through Asian trading hours, establishing fresh weekly lows near the $35.65 handle.
Technical observations reveal significant developments as the commodity breaks below the 23.6% retracement level of its May-June appreciation wave. This breakdown occurs alongside deteriorating momentum readings across multiple timeframes, with the 4-hour chart particularly highlighting growing bearish conviction. Traders should monitor the $35.50-$35.60 zone where the 100-period moving average currently resides.
Should downward momentum persist, market technicians identify several potential downside targets. The 38.2% Fibonacci projection near $35.15 emerges as immediate support, followed by psychological barriers at $35.00 and $34.75. More substantial support appears near the 50% retracement level at $34.45, which could determine whether this represents a healthy correction or the beginning of a more significant trend reversal.
Countertrend scenarios would require buyers to reclaim the $36.00 handle convincingly. However, overhead resistance between $36.40-$36.50 may cap any recovery attempts. A decisive break above this supply zone could reignite bullish momentum toward recent highs near $37.30.
Technical Observations
The current technical landscape suggests traders should exercise caution with long positions until clear reversal signals emerge. The breakdown below key Fibonacci levels combined with negative momentum divergence creates an environment where selling rallies may prove more effective than buying dips in the near term.
