Silver prices saw a modest uptick of 0.95% on Tuesday, driven by a weaker U.S. dollar, which closed the session below the 101.00 mark on the US Dollar Index (DXY). At the start of the Asian session, XAG/USD was trading at $32.92, holding near the psychological $33.00 level.
XAG/USD Technical Outlook:
The technical outlook for silver indicates potential consolidation in the short term, with significant resistance around the $33.00 mark. Despite the Relative Strength Index (RSI) maintaining a bullish stance, momentum indicators have shown signs of flattening, suggesting a period of indecision among traders.
For silver to continue its upward momentum, bulls will need to push past $33.00 and clear the recent swing high of $33.25 from May 7. A successful move above this level could see $33.50 as the next hurdle, followed by the April 28 high of $33.68. A breach of this level could open the door to $34.00.
On the downside, if silver falls below the 50-day Simple Moving Average (SMA) at $32.75, the price could head toward the 100-day SMA at $31.89. Should the weakness persist, the next major support lies at the 200-day SMA around $31.28, marking a critical level for bulls to defend.
