Silver Price Forecast: XAG/USD slips below 50-day SMA on strong US Dollar

NEW YORK (February 16) Silver price retreats during the North American session nearly 1%, after reaching a daily high of $78.20. Overall US Dollar strength amid thin volume trading as US financial markets remained closed, keeping the white metal within familiar levels, yet down below the 50-day Simple Moving Average (SMA) at $79.45.

XAG/USD Price Forecast: Technical outlook

Following the formation of a ‘bearish engulfing’ candle pattern that drove Siver prices from around $83.70 towards the $75.00 area, XAG/USD continued to exchange hands within the $75.00-$80.00 range during the last two trading sessions.

Momentum as measured by the Relative Strength Index (RSI) shows that sellers are in control, as the index sits below its neutral level.

However, sellers had failed to clear decisively the $75.00 milestone. If done, it could exacerbate a retracement towards the $70.00 figure, followed by the February 6 swing low of $64.10.

Conversely, for a bullish resumption, buyers are struggling to surpass $80.00. A breach of the latter will expose the February 12 high at $84.94, followed by the February 11 peak of $86.30 ahead of the 20-day Simple Moving Average (SMA) at $89.99.

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