Silver Price Forecast: XAG/USD hits two-week lows at $37.15 amid a firmer US Dollar

• Silver slides for the fifth day in a row, amid a stronger US Dollar, higher yields.

• Precious metals remain subdued with markets in a cautious mood, awaiting Fed Chair Powell's conference on Friday

• XAG/USD is testing support at $37.15 with momentum indicators reaching oversold levels.

Silver (XAG/USD) is trading lower for the fifth consecutive day on Wednesday. The precious metal is struggling amid a stronger US Dollar and is testing support at $37.15, following a sharp reversal from the $38.20 area on Tuesday.

The US Dollar Index, which measures the value of the USD against the six most-traded currencies, is consolidating gains after a 0.5% recovery over the last two days. A moderate recovery in US Treasury yields is boosting the US Dollar and weighing on Silver, as traders trim bets on immediate Fed cuts with all eyes on Fed Chairman Powell’s speech at the Jackson Hole meeting on Friday.

Technical analysis: XAG/USD is testing support at $37.15

The technical picture highlights a strong bearish momentum after rejection at the reverse trend line above $38.00. The pair, however, has found support at the 61.8% Fibonacci retracement of the early August rally, at 37.15, with RSI at oversold levels in most intraday timeframes, which points to the possibility of some consolidation.

A confirmation below $37.15 brings the 78.6% Fibonacci retracement of the mentioned cycle, at $36.75, and the August 4 low, of $36.65, to focus. Further depreciation is highly unlikely today.

To the upside, immediate resistance is the previous support, at the $37.670-$37.80 area, which contained bears on August 15, 18, and 19. Further up, Tuesday’s high at $38.20 and the mentioned trendline, at $38.55, will challenge bears.