Silver Price Forecast: XAG/USD bounces back above $36.00 as the Dollar plunges

• XAG/USD bounces off five-day low, forms bullish hammer as USD slides to 3-year trough
• Bullish hammer pattern suggests renewed upside momentum toward $36.88 and $37.49 -- a 13-year high.
• RSI remains steady despite overbought conditions, signaling buyers are still in control.
• Key support lies at $36.00 and $35.40; a break below would open the door to $35.00 and lower.

Silver price bounces off five-day lows of $35.46 and climbs past the $36.00 mark on Thursday as the Greenback gets battered, falling to nearly three-year lows. At the time of writing, the XAG/USD trades at $36.30, registering modest gains of 0.25% on Thursday, late in the North American session.

XAG/USD Price Forecast: Technical outlook

As Thursday's session finishes, Silver's uptrend would likely continue as a single candlestick chart pattern called a 'hammer' form. This means that XAG/USD could re-test the June 9 swing high at $36.88 before buyers set their sights on higher prices.

The Relative Strength Index (RSI) exited from overbought territory but, instead of aiming lower, remains flat. Therefore, the path of least resistance is tilted to the upsdide.

The first key resistance is the year-to-date (YTD) high, followed by the $37.00 figure. Once cleared, the next stop would be $37.49, a 13-year high set on February 29.

Conversely, if XAG/USD drops below $36.00, the first support level would be $35.40, a high from October 2012 that has since become a support level. Once surpassed, the next stop is $35.00, followed by the $34.00 and $33.00 figures,

XAG/USD Price Chart - Daily