Silver Price Forecast: XAG/USD plummets below $33.00 as Dollar rebounds, weekly losses near 2%

NEW YORK (May 30) Silver price turned negative on Friday during the North American session, poised to end the week with losses of over 1.80% as the dollar staged a recovery during the day. XAG/USD trades at $32.87, down 1.29%.

XAG/USD Price Forecast: Technical outlook

Silver price trade subdued but formed a ‘bearish harami’ candle chart pattern with bearish implications. Momentum appears to be shifting in favor of sellers, as the Relative Strength Index (RSI) has reached a lower trough at RSI’s neutral line, which, if cleared, could signal that the grey metal is poised for a leg lower.

If XAG/USD remains below $33.00, the next support to breach would be a May 29 swing low of $32.70. In that outcome, the next test would be the 50-day Simple Moving Average (SMA) at $32.68, followed by a test of the 100-day SMA at $32.11 and the 200-day SMA at $31.40.

However, buyers stepping in and cleared $33.00 look for a leg up towards $33.69, which could pave the way for a challenge of $34. On further strength, XAG/USD's next resistance level would be the March 26 high at $34.58, followed by $35.00.

FXStreet