Silver price recoils toward a key support level below $84.00 as the Greenback stages a recovery, and traders, unable to crack $90.00, opted to book profits after solid US Retail Sales data. At the time of writing, XAG/USD trades at $83.53, down more than 4.40%.
XAG/USD Price Forecast: Technical outlook
Silver retreated sharply as it aimed to test a crucial key support at the April 17 daily high, turned support at around $83.06, yet remained shy after hitting a daily low of $83.27.
From a momentum standpoint, buyers remain in charge as the Relative Strength Index (RSI)—edging lower—remains above its 50-neutral level.
For a bullish continuation, XAG/USD must clear $85.00. A breach of the latter will expose the May 13 daily low, which has turned into resistance at $83.65, followed by the day’s high at $88.44. On further strength, the next resistance would be the May 13 high at $89.36, followed by $90.00.
Downwards, should XAG/USD drop below $83.06, a move towards the 100-day Simple Moving Average (SMA) at $80.84 is on the cards. Below here, the next support is the $80.00 milestone, ahead of the 20-day SMA at $77.59 and the 50-day SMA at $77.08. Beneath this area, the next stop would be the $70.00 figure.
XAG/USD Price Chart – Daily
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