Silver Price Forecast: XAG/USD hovers near $38.00 after breaking above nine-day EMA

• Silver price may find an initial barrier at $39.53, the highest since September 2011.

• The bullish bias strengthens as the 14-day Relative Strength Index remains above the 50 level.

• Immediate support is located at the nine-day Exponential Moving Average, around the $37.69 level.

Silver price (XAG/USD) remains steady after registering gains in the previous three successive sessions, trading around $37.80 per troy ounce during the Asian hours on Wednesday. The technical analysis of the daily chart suggests the price of the precious metal moves upwards within an ascending channel pattern, indicating a persistent bullish bias.

The 14-day Relative Strength Index (RSI) is positioned above the 50 level, strengthening the bullish bias. However, the Silver price is trading below the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is weaker.

On the upside, the XAG/USD pair may explore the region around $39.53, the highest since September 2011, reached on July 23. A successful breach above this level could support the Silver price to target the upper boundary of the ascending channel around $40.60.

The Silver price may test the immediate support at the nine-day EMA of $37.69, followed by the 50-day EMA at 36.71, aligned with the ascending channel’s lower boundary at $36.50. A break below this crucial support zone would weaken the short- and medium-term price momentum and put downward pressure on the XAG/USD pair to test the nine-week low at $35.28, recorded on June 24. Further declines would cause the emergence of the bearish bias and prompt the Silver price to a four-month low at $31.65.

XAG/USD: Daily Chart