Silver Price Forecast: Dollar Dynamics and XAG/USD – Support at 49.35 Crucial for Further Direction

Silver (XAG/USD) quickly recovered from its short-term dip below the $50.00 mark during Asian trading and is now trading near $50.80 per ounce. The current price level thus continues the recovery from the multi-day low but is currently in neutral territory – neither significantly above nor below the previous day.

From a technical perspective, a critical level is emerging: the nightly low around $49.35 coincides with the 100-period Simple Moving Average (SMA) on the 4-hour chart. This double support zone marks the key point where market dynamics will decide. Observations from recent trading hours show that buyers have been building buying pressure exactly in this area whenever the price was pushed downward. For many market participants, the central question is: Will the current movement be just a pause in the overall uptrend, or does the correction from the four-week high (reached last Thursday) signal a second downward phase?

Technical signals still unclear – oscillators in neutral territory

The common momentum indicators on four-hour and daily bases are currently sending mixed signals. Neither a clear buy signal for aggressive long positions nor a convincing short impulse is emerging. In such an ambivalent environment, many traders await clear confirmation: a break below $49.35 would send the signal that sellers are regaining control.

If this support level falls, the path gradually opens toward the round $49.00 mark, then into the mid-48s zone. Below that, potential support lines are at $47.15/$47.10 and $46.55/$46.50 – in extreme cases down to the psychological barrier of $46.00. The message is clear: a break below $49.35 would release significantly deeper correction potentials.

Upside: Resistance at $51.15 must give way

On the upside, silver price first needs a breakthrough through the immediate hurdle around $51.00 – a zone where the market has hesitated multiple times recently. A stable daily close above this level and especially above the horizontal barrier at $51.15 would significantly brighten the technical picture. In this case, the round $52.00 mark comes into reach.

If the $52.35 hurdle is also overcome, it would be a clear technical sign that buyers are back in control and the correction phase has ended. In such a scenario, pullbacks would be seen as entry opportunities.

Conclusion for dollar and XAG/USD forecast

As long as support at $49.35 holds, the scenario of a sideways to recovery-oriented price movement prevails – a setup supported by buyers. Only a break below this critical line would shift the balance of power in favor of sellers and make deeper correction scenarios more likely.