- Silver maintains its position near $33.00, bolstered by a weakened US Dollar and increased risk appetite across global markets.
- The Relative Strength Index (RSI) exhibits a flattening trend despite the prevailing bullish sentiment, indicating potential near-term uncertainty and a possible phase of consolidation.
- A decisive break above the $33.25 level would pave the way for targets at $33.68 and subsequently $34.00; conversely, a drop below $32.75 could expose downside risks towards $31.89 and $31.28.
Silver prices experienced a modest increase of 0.95% on Tuesday, primarily driven by the US Dollar’s decline, with the US Dollar Index (DXY) settling below the 101.00 mark. The DXY serves as a benchmark for the dollar’s strength against a basket of six major currencies. As the Asian trading session commences, XAG/USD is currently trading at $32.92, reflecting slight gains as it approaches the $33.00 threshold. Market participants are closely monitoring upcoming economic data releases, including inflation figures and Federal Reserve statements, which could significantly influence the dollar’s trajectory and, consequently, silver prices.
XAG/USD Price Forecast: Technical outlook
The technical outlook for Silver suggests a period of consolidation may be imminent, with immediate resistance concentrated around the key psychological level of $33.00. While momentum indicators, such as the Relative Strength Index (RSI), remain in bullish territory, their recent flattening suggests growing indecision among traders. This could signal a temporary pause in the upward momentum as the market assesses its next move.
For a continuation of the bullish trend, buyers must successfully overcome the $33.00 barrier and subsequently breach the recent swing high established on May 7 at $33.25. A successful move above this level would open the door for a test of the $33.50 resistance, followed by the April 28 high of $33.68. A decisive break above $33.68 would then set the stage for a potential advance towards the $34.00 level. Conversely, failure to hold above $32.75 could trigger a deeper correction, potentially exposing downside targets at $31.89 and $31.28. Traders should also pay attention to overall market sentiment and any unexpected geopolitical events, which could introduce volatility into silver trading.
