Silver Price Forecast: XAG/USD falls toward $56.50 after pulling back from nine-day EMA

XAG/USD extends its losses for the second consecutive day, trading around $56.80 per troy ounce during the European hours on Thursday. The technical analysis of the daily chart shows that the spot price of an asset remains slightly below the upper boundary of a descending channel, suggesting a persistent bearish domination. It shows that sellers are consistently stepping in exactly where they are expected to, preventing a breakout and maintaining the overall bearish structure.

The XAG/USD pair is retaining a bearish near-term bias as price holds below both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of the shorter EMA beneath the longer one, with spot trading under both, suggests downside pressure remains dominant, while the 14-day Relative Strength Index (RSI) at 35 is hovering just above oversold territory, hinting at weak but not extreme selling momentum.

The XAG/USD pair may test the primary support at the seven-month low of $55.63, which was recorded on June 24. Further declines would put downward pressure on the XAG/USD pair to navigate the region around the lower boundary of the descending channel around $45.50.

On the upside, the XAG/USD pair is facing an immediate barrier at the upper boundary of the descending channel around $58.50, followed by the nine-day EMA at $58.68. A sustained break above this confluence resistance zone would cause a bullish bias and support the Silver price to explore the region around the 50-day EMA at $65.93.