Silver Price Forecast: XAG/USD recovery stalls at $37.40 ahead of US services data

• Silver recovery from $36.20 lows is struggling to find acceptance above $37.40.
• Precious metals are suffering on Tuesday amid a mild risk appetite and higher US yields.
• XAG/USD's bulls are likely to be capped below resistances at $38.00 and $38.75.

Silver (XAG/USD) is holding quite well the moderate US Dollar's recovery, but the precious metal remains stalled in no-man's land above $37.00, with the 4-hour RSI at the 50 level, highlighting a lack of clear momentum.

Precious metals are struggling on Tuesday, with the US Dollar picking up, supported by a mild bounce in US Treasury yields. Hopes of Fed cuts are expected to keep USD upside attempts limited, but the Greenback has scope for further recovery, especially if US services activity beats expectations later today.

Technical analysis: Silver remains biased lower while below $38.00

The technical picture shows XAG/USD on a bearish reversal from the last four months' bullish cycle. The break of the ascending trendline support last week confirms that view.

The current rebound is seen as corrective. The 4-hour RSI is bouncing up from oversold levels, yet losing momentum at levels above 50, with previous support at $37.95, and the broken trendline, now at $38.75, are highly likely to cap bulls.

To the downside, support is at Friday's low of $36.21, which guards the path towards the June 24 and 29 lows, at $35.34 ahead of the early June lows, at $34.40 and $34.20.