Silver Price Forecast: XAG/USD breaks below $32.50, support appears at nine-day EMA

LONDON (March 10) Silver price (XAG/USD) remains subdued for the third successive day, trading around $32.40 during the European hours on Monday. Technical analysis on the daily chart indicates a weakening bullish bias, with the grey metal breaking below an ascending channel pattern.

However, Silver price remains above the nine-day and 50-day Exponential Moving Averages (EMAs), signaling that short-term momentum is stronger. Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 mark, confirming the bullish bias is in play.

A successful return to the ascending channel would strengthen the bullish outlook, supporting Silver price in testing the four-month high of $33.40, recorded on February 14. A breakout above this level could drive the metal price toward the channel's upper boundary at $34.20.

To the downside, the XAG/USD pair may find initial support at the nine-day EMA of $32.21. A break below this level could weaken short-term price momentum, pushing Silver's price toward the $31.61 support level. Further downside support is seen at the two-month low of $30.70, recorded on February 3.

FXStreet