On the four-hour chart, the price is trying to resume growth from the August lows (18.38). If the middle line of Bollinger bands is broken upwards around 18.70, it may continue to 18.95 (correction 23.6%) and 19.30 (correction 38.2%), but the asset will have to break through the downwards fan. If the quotes consolidate below 18.38, 18.08 (extension of 61.8%) can become the first target for the decline.
The downtrend in the XAG/USD pair continues, which is confirmed by technical indicators: Bollinger bands are directed downwards, the MACD histogram is stable in the negative zone, and Stochastic has reversed upwards from the oversold zone, which gives the possibility of corrective growth but its potential is seen as limited.
On the daily chart, the price is testing 18.35 (correction 0.0%), consolidation below, which will give the prospect of further decline up to 16.22 (extension 61.8%). Otherwise, the growth of quotations will be able to resume to 19.60 (the middle line of Bollinger bands) and 20.15 (correction 23.6%), but this movement variant seems less likely.
Technical indicators reflect the continuation of the downward movement: Bollinger bands and Stochastic are reversing downwards, and the MACD histogram is increasing in the negative zone.
Support and resistance
The continuation of the price decline seems more likely to be 18.08 (extension 61.8% for H4) and 16.22 (extension 61.8% for D1). If 18.70 (the middle line of Bollinger bands for H4) is broken upwards, growth may resume to 18.95 (correction 23.6% for H4), 19.30 (correction 38.2% for H4), and 20.15 (correction 23.6% for D1).
Resistance levels: 18.70, 18.95, 19.30, 20.15. | Support levels: 18.38, 18.08, 16.22.