Silver Price Forecast: XAG/USD tests $38.00 support near nine-day EMA

• Silver price tests initial support at the crucial level of $38.00, aligned with the nine-day EMA at $37.96.
• The 14-day Relative Strength Index remains above 50, indicating a potential bullish market outlook.
• The primary resistance appears at the descending channel's upper boundary around $38.60.

Silver price (XAG/USD) depreciates after two days of gains, trading around $38.10 per troy ounce during the European hours on Friday. The technical analysis of the daily chart suggests the price of the precious metal remains within a descending channel pattern, indicating a bearish bias is active.

The 14-day Relative Strength Index (RSI) is positioned above the 50 level, suggesting the potential for a bullish market outlook. Additionally, the Silver price is trading slightly above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is strengthening.

The Silver price is testing its immediate support at the psychological level of $38.00, aligned with the nine-day EMA at $37.96. A break below this crucial support zone may strengthen the bearish bias and prompt the pair to test the 50-day EMA of $37.21. Further declines would weaken the medium-term price momentum and put downward pressure on the XAG/USD pair to the descending channel's lower boundary around $35.60, followed by the 11-week low at $35.28, recorded on June 24.

On the upside, the XAG/USD pair may find its initial barrier at the upper boundary of the descending channel around $38.60. A break above the channel could confirm the bullish bias and support the Silver price to explore the region around $39.53, the highest since September 2011, reached on July 23.

XAG/USD: Daily Chart