Silver price tanks and challenges the 200-day Simple Moving Average (SMA) near $67.79, as the white metal registers losses of nearly 8%, poised to end the week down by almost 10%, amid a stronger-than-expected US Nonfarm Payrolls report.
XAG/USD Price Forecast: Technical outlook
Silver has extended its losses this week, hitting a nine-week low of $68.03, as sellers target the 200-day SMA. Momentum, as measured by the Relative Strength Index (RSI), shows that sellers are in charge as the index approaches oversold territory.
If XAG/USD tumbles below the 200-day SMA, the next area of interest would be the March 23 swing low of $61.01, ahead of the psychological $60.00 mark. Below this area, the next support would be the November 13 low, which turned into support at $54.39.
For a bullish reversal, Silver’s first resistance is the $70.00 mark. Above this level, the next resistance is the May 28 low-turned-resistance at $71.79, followed by the psychological $75.00 level. A breach of the latter will expose the 50-day SMA at $76.17.
XAG/USD Price Chart – Daily
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