Silver (XAG/USD) attracted some dip buyers near the $32.20 area during the Asian session on Friday (09/05) and climbed to a fresh intraday high in the last hour. However, the white metal remained within a broader trading range from the previous day and is currently trading just above the mid-$32.00s, up over 0.25% for the day.

From a technical perspective, the recent price action along a descending channel constitutes the formation of a bullish flag pattern against the backdrop of a decent recovery from the $28.45 area, or the YTD low touched in April. Moreover, oscillators on the daily/hourly charts are holding in the positive territory, suggesting that the path of least resistance for XAG/USD is to the upside.

However, any subsequent up-move is likely to face some resistance ahead of the $33.00 round figure or the overnight swing high. This is closely followed by the upper boundary of the descending channel, currently around the $33.15 zone, below which XAG/USD could accelerate the move higher towards the $33.70 intermediate hurdle before bulls attempt to reclaim the $34.00 mark.

On the flip side, the $32.25-$32.20 region now seems to have emerged as an immediate strong support. Any further weakness, leading to a subsequent break below the $32.00 mark, could expose the descending channel support near the $31.50-$31.45 zone. The latter should act as a key pivotal point, which, if broken, will negate the constructive setup and shift the near-term bias in favour of bearish traders.(Newsmaker23)

Source: FXstreet