Both are in a correction phase, a decline is possible.

On the daily chart, a third upward wave of a higher level (3) has formed, within which wave 3 of (3) has ended and a correction developed into the fourth wave 4 of (3). Now, wave a of 4 is forming, within which wave (iii) of a has ended and a correction developed into wave (iv) of a. If the assumption is correct, the XAG/USD pair will decline to the area of 27.74–26.00. In this scenario, an important stop loss level is 32.10.

Main situation

Short positions will be relevant below the level of 32.10 with targets at 27.74–26.00. Execution period: 7 days or more.

Alternative scenarios

If the price breaks through the range and forms a base above 32.10, the asset will grow to the 33.37–34.83 area.