Silver Price Forecast: XAG/USD returns above $37.00 with the bearish trend intact

• Silver bounced up above $37.00, but the bearish structure remains in place.
• The precious metal is going through a bullish correction, following downbeat US employment data
• XAG/USD's bulls are likely to be capped below resistances at $38.00 and $38.50.

Silver (XAG/USD) is drawing support from a depressed US Dollar and the recent decline in US Treasury yields to regain the $37.00 level, but the immediate trend remains bearish with the recent trend of lower highs and lower lows still intact.

The precious metal bounced up from multi-week lows at $36.20, as US employment data disappointed, triggering renewed concerns about a recession and boosting hopes that the Fed will be forced to focus on the softer labour market and cut interest rates sooner rather than later.

Technical analysis: Silver has a key resistance at $38.00

The technical perspective, however, remains little changed. The XAG/USD broke the ascending trendline support last week, putting an end to the bullish cycle from April's lows.

The current rebound is seen as corrective. The 4-hour RSI is bouncing up from oversold levels but remains below the 50 line that divides the bearish from the bullish area.  Immediate resistance is at the intraday high of $37.40. A further correction is not discarded, especially if US Factory orders disappoint, but previous support, at $37.95, and broken trendline, now at $38.50, are highly likely to cap bulls.

To the downside, A bearish move below Friday's low, at $36.21, would put bears back in control, and shift the focus towards the June 24 and 29 lows, at $35.34, ahead of the early June lows, at $34.40.

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