Silver Price Forecast: XAG/USD wavers near $36.00 with all eyes on US jobs data

LONDON (July 2) Silver (XAG/USD) is trading back and forth near the $36.00 level with investors showing hesitation and awaiting further data about the US labour market for a more accurate assessment of the timing of Fed rate cuts.

US Job Openings beat expectations on Tuesday, and the ISM Manufacturing PMI highlighted a significant improvement in the sector’s business activity. These data, and Fed Powell’s cautious tone provided some support to the US Dollar on Tuesday.

Technical Analysis: XAG/USD is looking for direction around $36.00

Technical indicators show a hesitant market, underscored by the Doji candles in the daily chart, while the 4-hour RSI keeps fluctuating around the 50 level, suggesting a lack of clear bias.

The precious metal remains trading within the last three weeks’ range, between $35.40 and $37.35, consolidating gains following a sharp rally from early May lows.

On the downside, a break of the mentioned $35.40 level would confirm a bearish H&S pattern, a common signal of trend shifts, and increase pressure towards $34.10 (June 4 low) and the pattern’s measured target, at $33.43.

The area between $36.60 and $36.85 June 26, July 1 highs) is holding bulls for now and closing the path to the June 18 high, at $37.35.

FXStreet