XAG/USD hits fresh highs $64.00 as the US Dollar languishes

XAG/USD 4-Hour Chart

The pair looks overstretched after rallying more than 25% in the last three weeks. The 4-hour Relative Strength Index (RSI) is at 75, highlighting a bearish divergence, which should act as a warning for buyers. Price action, however, is not showing signs of a trend change so far.

Silver is struggling to consolidate above $64.00 at the moment of writing, with the next upside target at the mentioned $64.62 session high, and the top of the ascending channel, right above $65.00. Further up, the 261.8% Fibonacci extension of the December 9-10 uptrend is at $68.17.

Thursdays

To the downside, the pair has found support at the $62.80 intraday level, with the next bearish target at Thursdays low of $61.44. Further down, the confluence between the December 10 low, near $60.00, and the bottom of the ascending channel, now around $59.85, is a key area for bears.