- Bullish Scenario: Buy at 27.45 (awaiting bullish reversal pattern formation) with TP: 28.21 and S.L. below 27.30 or at least 1% of account capital. Apply trailing stop.
Bearish Scenario: Sell after decisive breakout (candle body) below 27.30 with TP1: 26.92, TP2: 26.77, and TP3: 26.26 with S.L. above 27.50 or at least 1% of account capital.
H4 Chart
XAGUSD confirmed an intraday trend change this week after the confirmed breakout of support at 27.53, reaching a first demand zone at POC 26.75, from where the bullish retracement was activated, which today could get the uncovered POC* at 27.83 or even, after its breakout, extend purchases towards 28.26 where the highest volume concentration of April has occurred so far.
In this context, sales are expected below 27.83, towards the supply zone of the first sessions around 27.41 and the day's opening (D1:O), from where two movements can be expected:
Corrective bullish perspective: New purchases above 27.41, especially if a bearish exhaustion/reversal pattern is formed and confirmed after this retracement. In this case, a decisive breakout above 27.83 is expected with a possible extension towards 28.21, a strong supply zone that can reactivate bears to renew sales in the short term.
Bearish perspective: It will occur after the decisive breakout of the Asian/European POC at 27.41 with sales extension towards 26.92 and the bearish average range at 26.77, whose breakout on a second touch will expand sales towards the next demand zone around the uncovered POC* at 26.26 after the opening of the next week.
*Uncovered POC: POC = Point of Control: It is the level or zone where the highest volume concentration occurred. If there was a bearish movement from it previously, it is considered a selling zone and forms a resistance zone. On the contrary, if there was a bullish impulse previously, it is considered a buying zone, usually located at lows, forming support zones.
Risk Warning
This analysis does not constitute investment advice or an offer to engage in financial transactions. Although every investment carries risks, trading forex and other leveraged assets can involve significant losses. A comprehensive understanding of the risks is recommended before investing.
