Silver Price Forecast: XAG/USD fails to catch $29 as USD Index rebounds, US Retail Sales eyed

• Silver price has shown signs of a loss in the upside momentum while rallying towards $29.00.
• June’s Retail Sales data is seen expanding at a pace of 0.5% vs. the former pace of 0.3%.
• Silver price has delivered a break above the horizontal resistance plotted from $24.59, which has turned into support now.

Silver price (XAG/USD) has sensed selling pressure while attempting to capture the crucial resistance of $29.00 in the London session. The upside momentum in the white metal is losing strength as the US Dollar Index (DXY) has attempted a recovery, however, the upside bias is still intact.

S&P500 futures are showing choppy moves portraying caution among market participants as companies are ready to report second-quarter earnings. Mixed earnings are expected from corporate as the Federal Reserve (Fed) remained aggressive while hiking interest rates from last year’s winter. Also, United States commercial banks deployed more filters on the credit distribution process to maintain asset quality.

The US Dollar Index has rebounded after a straight six-day decline to near 99.50. Price pressures in the United States economy have dropped as gasoline prices have softened sharply and individuals have surrendered spending on big-ticket items to cater to necessities. Households’ real income has slimmed due to higher inflationary pressures.

Going forward, investors will focus on the monthly US Retail Sales data (June), which will release on Tuesday at 12:30 GMT. As per the consensus, the economic data is seen expanding at a pace of 0.5% vs. the former pace of 0.3%.

Silver technical analysis

Silver price has delivered a break above the horizontal resistance plotted from June 09 high at $24.59 on a daily scale, which has turned into support now. The asset is approaching its next stoppage, which is placed from 10 March 2022 high at $26.07.

Upward-sloping 10-period Exponential Moving Average (EMA) at $23.74 is providing support to the Silver bulls.

The Relative Strength Index (RSI) (14) has jumped above 60.00, showing no signs of divergence and any signal of overbought.

Silver daily chart