Silver Price Forecast: XAG/USD hesitates below $37.00 with downside attempts finding buyers

LONDON (July 8) Silver (XAG/USD) keeps trading within the last four weeks $2 range, but recent price action shows an ascending trend from late June lows, although the resistance area at $37,00 remains holding bulls and closing the path towards the $37.25 long-term high.

Market’ concerns about trade uncertainty keep buoying the precious metal but the firm US Dollar and the higher US Treasury yields are keeping Silver’s upside attempts limited so far.

Technical Analysis: XAG/USD key resistance is at $37.25

The technical picture shows an improving bullish momentum. Price action highlights a succession of higher highs and higher lows, and the 4-Hour Relative Strength Index has resurfaced above the 50 level. 

Monday’s reversal found strong support at the channel bottom, which suggests that dips are finding buyers, but the pair is treading water on Tuesday, in hesitant markets as reflected in the flat daily performance.

Resistance area near the $37.00 area (intra-day high and July 4 high) is capping bulls for now, but downside attempts remain limited with the key $37.25 level (June 18 high) at a relatively short distance.

On the downside, the intraday low at $36.65 is providing support ahead of the channel bottom, now at $36.25. A confirmation below here cancels the bullish view and brings the June 27 and July 1 lows, at 35.80, into focus.

FXStreet