Silver Price Forecast: XAG eyes 100-day SMA after Waller rally
Silver price advances by some 2.45% on Thursday, boosted by dovish comments from Fed Governor Waller, which pushed the US Dollar and US Treasury yields lower. The XAG/USD trades at $66.90, after reaching a high of $67.48.
XAG/USD Price Forecast: Technical Outlook
The white metal is neutral to downward biased. After hitting an all-time high of $121.66, the Silver price respects the market structure of lower highs and lower lows, indicating that sellers are in control.
Momentum shifted in favour of bulls in the short-term as depicted by the Relative Strength Index (RSI), which dipped to its 50-neutral level before bouncing higher. Therefore, the path of least resistance is upwards.
To resume the uptrend, Silver must clear the 100-day Simple Moving Average (SMA) at $67.66. A breach of the latter will expose the August 28 swing high of $71.12, followed by the 200-day SMA at $72.78. If those two levels are taken out, buyers could challenge the May 25 high at $78.83, ahead of $80.00.
On the other hand, if XAG/USD struggles to break above the 100-day SMA, sellers could drive prices towards the September 2 swing low of $63.32. A decisive break will expose the 50-day SMA at 61.85, before the precious metal registers a leg lower towards $60.00.
XAG/USD Price Chart – Daily
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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