Silver Price Forecast: XAG/USD targets confluence resistance zone around $39.00

• Silver price may find an immediate barrier at the psychological level of $39.00.
• The 14-day Relative Strength Index holds above 50, reinforcing the bullish bias.
• The primary support appears at the nine-day EMA of $38.26.

Silver price (XAG/USD) edges lower after three days of gains, trading around $38.80 per troy ounce during the European hours on Monday. The technical analysis of the daily chart suggests the price of the precious metal remains within an ascending channel pattern, indicating a persistent bullish bias.

The 14-day Relative Strength Index (RSI) is positioned above the 50 level, strengthening the bullish bias. Additionally, the Silver price is trading above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger.

On the upside, the XAG/USD pair may test the psychological level of $39.00, followed by the upper boundary of the ascending channel around $39.17. A break above this crucial resistance zone would reinforce the bullish bias and support the metal price to test $39.53, the highest since September 2011, reached on July 23.

The Silver price may find its primary support at the nine-day EMA of $38.26, followed by the 50-day EMA of $37.30 and the ascending channel's lower boundary around $37.20. A break below this confluence support zone would weaken the short- and medium-term price momentum and prompt the XAG/USD pair to test the 11-week low at $35.28, recorded on June 24.

XAG/USD: Daily Chart