Silver Price Forecast: XAG/USD Hovers Around $33.00 Amid Weak US Dollar
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- Silver holds near $33.00, supported by soft Dollar and improved risk appetite.
- RSI flattens despite bullish tone, suggesting near-term indecision and possible consolidation.
- Break above $33.25 targets $33.68 and $34.00; drop below $32.75 may expose $31.89 and $31.28.
Silver price edged up 0.95% on Tuesday as the Greenback finished the session below the 101.00 figure, according to the US Dollar Index (DXY), which tracks the performance of the buck’s value against a basket of six currencies. At the time of writing, as the Asian session begins, XAG/USD trades at $32.92, registering modest gains near the $33.00 figure.
XAG/USD Price Forecast: Technical outlook
The Silver technical outlook suggests that further consolidation lies ahead, with stir resistance found at the psychological $33.00 figure. However, momentum indicators like the Relative Strength Index (RSI), despite remaining bullish, turned flattish as indecision sinks on traders.
For a bullish resumption, buyers need to reclaim $33.00 and clear the latest swing high reached on May 7 at $33.25. Once surpassed, $33.50 emerges as next resistance, followed by the April 28 high of $33.68. A breach of the latter will expose $34.00.
Conversely, if XAG/USD drifts below the 50-day Simple Moving Average (SMA) of $32.75, a move towards the 100-day SMA at $31.89 is likely. On further weakness, the bulls' following line of defense would be the 200-day SMA at $31.28.
XAG/USD Price Chart – Daily
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