Silver Price Forecast: XAG/USD peaked around $24.50 and plunged to $23.50 on USD strength

• Silver extended its losses to two-consecutive days, down by 1.97% on Wednesday.
• From a daily chart perspective, the XAG/USD is neutral to upward biased but needs to hold prices above $23.00 to extend its gains.
• XAG/USD Price Analysis: Neutral-to-downward biased, and once it clears $23.00, that could expose Silver to lower prices.

Silver price plummeted for the second straight day, extending its losses below $23.50 on Wednesday, as late US Dollar (USD) strength erased the greenback losses in the day, a headwind for the white metal. At the time of writing, the XAG/USD is trading at $23.45, below its opening price by 1.97%.

Silver Price Forecast: XAG/USD Technical Outlook

The XAG/USD daily chart suggests Silver is neutral-to-upward biased. Even though the pullback cleared the 20-day Exponential Moving Average (EMA), a  decisive break below the January 5 daily low of $23.12 is needed to shift the bias to neutral; additionally, it will expose the 50-day EMA at $22.86. Oscillators like the Relative Strength Index (RSI) suggest that sellers are beginning to gather momentum, so the last line of defense for XAG/USD buyers would be $23.00.

Analyzing Silver from an intraday perspective, the XAG/USD 4-hour chart portrays the pair as neutral-to-downward biased, as the Exponential Moving Averages (EMAs) reside above XAG/USD price. However, to further extend its downtrend, the white metal needs to clear the 200-EMA at $23.33, which, once cleared, could open the door for further losses. Therefore, the XAG/USD first support would be the January 5 swing low at $23.22. Once cleared, it would expose the December 19 daily low of $23.10, followed by the December 16 pivot low at $22.52.

Silver Key Technical Levels