Silver Price Forecast: XAG/USD eyes a confident break above $24.00 as USD Index retreats

• Silver price is hoping to shift its auction above $24.00 amid a sell-off in the USD Index.
• Further ease in US labor market conditions indicates that the Fed could continue skipping rate hikes in July too.
• The anatomy of the Retail Sales report showed that demand for automobiles and building materials was extremely solid.

Silver price (XAG/USD) is looking for breaking above the crucial resistance of $24.00 in the European session. The white metal is getting strength as the US Dollar Index (DXY) is expected to resume its downside journey below 102.00.

The USD index has retreated after a less-confident pullback to near 102.29 as further ease in United States labor market conditions indicates that the Federal Reserve (Fed) could continue skipping interest rate hikes in July’s monetary policy meeting too.

On Tuesday, the US Department of Labor conveyed that initial jobless claims have landed higher than expectations straight for four weeks. For the week ending June 09, jobless claims landed at 262K, similar to their prior release while the street was anticipating a decline to 249K.

While upbeat monthly Retail sales data failed to provide strength to the US Dollar bulls. The anatomy of the Retail Sales report showed that demand for automobiles and building materials was extremely solid. The economic data was surprisingly expanded by 0.3% while the street was anticipating a contraction of 0.1% but the pace of expansion has slowed against the prior pace of 0.4%.

Meanwhile, S&P500 futures have recovered their entire losses while entering into the London session as the overall market mood is quite upbeat.

Silver technical analysis

Silver price has climbed above the 38.2% Fibonacci retracement (plotted from May 26 low at $22.68 to June 09 high at $24.53) at $23.83 on an hourly scale. The 20-period Exponential Moving Average (EMA) at $23.83 is providing support to the Silver bulls.

The Relative Strength Index (RSI) (14) is looking to shift into the bullish range from the bearish range of 20.00-60.00. An occurrence of the same will activate the upside momentum.

Silver hourly chart