Silver Price Forecast: XAG/USD challenges strong resistance at nine-day EMA around $32.50

LONDON (May 20) Silver price (XAG/USD) seems to extend its losses for the third successive session, trading around $32.30 per troy ounce during the European hours on Tuesday. Technical analysis of the daily chart indicates a developing bearish bias, as the precious metal price consolidates within a descending channel pattern.

The 14-day Relative Strength Index (RSI) remains below the 50 level, indicating a potential for a bearish bias. Additionally, the Silver price is positioned below both the nine-day Exponential Moving Average (EMA), further highlighting the short-term downturn momentum is in play.

On the downside, the Silver price could retest the six-week low at $31.65, which was recorded on May 15. A break below this level could put downward pressure on the metal price to test the lower boundary of the descending channel pattern around $30.90. A break below the channel could reinforce the bearish bias and open the doors for the price of the precious metal to navigate the region around the eight-month low of $28.00, marked on April 7.

The XAG/USD pair is testing its immediate barrier at the nine-day EMA of $32.48, followed by the descending channel’s upper boundary around the psychological level of $33.00. A break above this crucial resistance zone could weaken the bearish bias and support the pair to test the seven-week high at $33.69, reached on April 24, followed by the seven-month high of $34.59, last seen on March 28.

FXStreet