XAGUSD H4 Analysis: Wave 4 Pullback Could Set the Stage for Wave 5 Toward 74

Introduction

Silver (XAGUSD) continues to maintain a bullish Elliott Wave structure on the H4 timeframe. The latest price action suggests that subwave (iii) has completed, with the market now potentially entering subwave (iv) pullback before another bullish move develops.

The key focus is whether the identified support zone can hold and allow Wave 5 to extend toward the higher Fibonacci target area.

Technical Analysis

The current structure shows a clear impulsive sequence from the Wave 2 low, with Wave 3 extending strongly higher. Price has now reached the area labelled subwave iii, indicating that a corrective move may be developing.

The projected subwave iv is expected to retrace toward the yellow support zone around 67.30–67.70. This area is important because it may provide the next potential reaction zone before the market resumes its bullish structure.

The Awesome Oscillator also supports the possibility of a short-term pullback. Momentum remains positive, but the histogram is showing signs of declining momentum after the strong upside movement.

If the Wave 4 correction respects the projected support area, the next move could be subwave v, targeting the major Fibonacci projection zone around 72–74.50.

The bullish scenario remains valid as long as the corrective structure does not break the important Wave 2/Wave 4 invalidation levels.

Conclusion

The overall XAGUSD H4 structure remains bullish. The immediate expectation is for a Wave 4 pullback toward the 67.30–67.70 support zone, followed by a potential Wave 5 advance.

Key scenario:
Wave 4 pullback → support zone → Wave 5 rally → 72–74.50 target area.

Traders should monitor price reaction around the support zone for confirmation before expecting the next bullish impulse.