Silver Price Forecast: XAG/USD Climbs Above $36.00 On Weak Us Dollar
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- Silver rebounds from $35.68, trades near $36.25 as month-end flows weigh on US Dollar.
- Bullish ‘morning star’ forms; RSI stays positive, signaling potential upward momentum.
- Resistance at $36.42 and $37.31; support at $35.29 and 50-day SMA at $33.95.
Silver price advances by nearly 1% on Wednesday, as the US Dollar depreciates due to month-end flows, along with expectations of falling US Treasury yields. At the time of writing, XAG/USD trades at $36.25, after bouncing off daily lows of $35.68.
XAG/USD Price Forecast: Technical Analysis
Even though Silver dipped to a new two-week low of $35.29 last Friday, the grey metal found bids, which pushed the spot price above $36.00 and formed a ‘morning star’ three-candle chart bullish pattern. Despite this, the Relative Strength Index (RSI) remained flat in bullish territory, suggesting that the pair is neutral to upwardly biased. If XAG/USD clears key resistance levels, then the uptrend could resume.
The first key area of interest will be the June 20 high of $36.42. Once surpassed, the next stop would be $37.00, followed by the multi-year high of $37.31.
On the flip side, if XAG/USD tumbles below the June 24 low of $35.29, expect a pullback all the way towards the 50-day Simple Moving Average (SMA) at $33.95.
XAG/USD Price Chart – Daily
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