Silver (XAG/USD) price surges more than 4% on Wednesday as the Greenback remains on the back foot due to softer-than-expected jobs and data, though the fall was capped as business activity in the services sector continued to expand. Also, a test of key technical resistance at the 50-day Simple Moving Average (SMA) near $62.65 limits the white metal advance. At the time of writing, XAG/USD trades at $62.21, its highest level in the last month.
Silver Price Forecast: Technical outlook
As of writing, it seems that Silver is poised to extend its gains, but it is crucial to clear the 50-day SMA. The Relative Strength Index (RSI) shows that momentum has shifted bullish, meaning that the path of least resistance is upwards.
If bulls want to regain total control, they must reclaim the psychological $65 level. Once done, their focus needs to be on the 100-day SMA at $69.22, before challenging the $70 milestone, last reached in mid-June. The next area of interest emerges at the 200-day SMA at $71.06.
Downwards, if XAG/USD retreats and ends the day below $62, it opens the door for a move to the August 3 swing low of $59.40. If broken, this opens the way towards retesting yearly lows of $54.77.
Silver Price Chart – Daily
Silver daily chart
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