Silver Price Forecast: XAG/USD approaches $67.00 as bulls await trading range breakout

• Silver regains positive traction on Wednesday and climbs to the top end of the weekly range.
• Sustained strength beyond the 100-SMA on the H4 should pave the way for further upside.
• The mixed technical setup warrants some caution before placing aggressive directional bets.

Silver (XAG/USD) builds on its intraday ascent and climbs back closer to the weekly high, around the $67.00 neighborhood during the early European session on Wednesday. The white metal, however, remains confined within a familiar range held over the past week or so, warranting some caution for bulls ahead of the crucial US inflation figures.

From a technical perspective, the XAG/USD bulls need to wait for acceptance above the 100-period Simple Moving Average (SMA) on the 4-hour chart, currently pegged just ahead of the $67.00 mark, before placing fresh bets. This will also mark a fresh breakout through the trading range and pave the way for additional near-term gains.

Meanwhile, the Relative Strength Index (RSI) has recovered toward the mid-50s, hinting at stabilizing momentum. Moreover, the Moving Average Convergence Divergence (MACD) shows a modest positive reading after a shallow dip, suggesting that the downside pressure is fading but not yet reversed, while the XAG/USD remains below the 100-SMA.

On the topside, momentum beyond the $67.00 mark could extend further towards retesting the monthly swing high, around the $68.00 round figure. Some follow-through buying would ease any near-term bearish tone and reaffirm a constructive outlook. On the downside, immediate support is seen near x$65.40-$65.30 or the lower boundary of the trading range.

A convincing break below would shift the near-term bias in favor of bearish traders and expose the monthly swing low, around the $63.35-$63.30 region, and drag the XAG/USD further below the $63.00 mark, towards the 62.20 support zone.

XAG/USD 4-hour chart

Register a Revolut Business Account