- Silver is struggling to maintain its momentum, hovering near the 100-day SMA at $30.34 with a downtrend.
- A potential further decline could see silver test key support at $30.00 and the 200-day SMA at $28.63.
- A rebound above $31.00 could challenge higher resistance, hitting the 50-day SMA of $31.51 and higher.
Silver fell more than 0.70% below $30.30 after solid U.S. retail sales data suggested the Federal Reserve may gradually ease policy. At the time of writing, XAG/USD is trading at $30.21, having hit an intraday high of $30.81.
XAG/USD Price Forecast: Technical Outlook
Silver price remains low around the 100-day straightforward moving average (SMA) at $30.34. Nevertheless, the medium-term bias is tilted to the downside and as bears push prices below the August 26 support high at $30.18, they will test the psychological mark of $30.00. A breach of the latter will expose a 200-day SMA at $28.63, followed by the September 6 low of $27.69.
If silver returns above $31.00, it could pave the way for it to break the 50-day SMA at $31.51. Once crossed, the next resistance for XAG/USD will be $32.00.
Oscillators such as the Relative Strength Index (RSI) indicate that further decline in the XAG/USD parity is observable as the RSI continues to fear oversold.
