Silver Price Forecast: XAG/USD tests $36.00 support after retreating from nine-day EMA

LONDON (June 24) Silver price (XAG/USD) retraces its recent gains registered in the previous session, trading around $36.00 per troy ounce during the early European hours on Tuesday. The technical analysis of the daily chart shows the price of the precious metal remains within an ascending channel pattern, which suggests a prevailing bullish bias.

Additionally, the 14-day Relative Strength Index (RSI) is still positioned above the 50 level, indicating a persistent bullish outlook. However, the Silver price remains below the nine-day Exponential Moving Average (EMA), highlighting that the short-term momentum is weaker.

The XAG/USD pair could find its immediate barrier at the nine-day EMA of $36.16. A successful breach above this level would strengthen the short-term price momentum and support the pair to test the $37.32, the highest since February 2012. Further advances would open the door for the Silver price to explore the region around the upper boundary of the ascending channel around $39.50.

On the downside, the Silver price is testing the ascending channel’s lower boundary around $36.00. A successful break below the channel would cause the emergence of the bearish bias and put downward pressure on the XAG/USD pair to test the 50-day EMA at $34.36. Further decline would dampen the medium-term price momentum and prompt the price of Silver to navigate the region around the two-month low at $31.65, which was recorded on May 15.

FXStreet