Silver price extended its rally to three days on Wednesday, edging up 0.21% as the Greenback continued to weaken across the board. Moody’s downgrade to US sovereign debt and the vote of the US fiscal budget, keeps investors seeking safety in the precious metal. At the time of writing, XAG/USD trades at $33.45.

XAG/USD Price Forecast: Technical outlook

Silver prices stabilized within the $33.00-$33.50 for the day and ended Wednesday’s session near the $33.40 area, closing into the first key resistance level at $33.50. As wrote yesterday, “The Relative Strength Index (RSI) favors buyers,” which means that a decisive breach of key resistance levels could pave the way to challenge $34.00.

On the other hand, if XAG/USD tumbles below $33.00, it would open the path to challenge the 100-day SMA at $31.98, followed by a test of the 200-day SMA at $31.30.

Sumber : fxstreet