Silver Price Forecast: XAG/USD moves below $48.00 after pulling back from all-time highs

• Silver price may recover above the psychological level of $48.00.
• The 14-day Relative Strength Index is above 70, suggesting a potential for a downward correction.
• The initial support appears at the nine-day EMA of $47.00.

Silver price (XAG/USD) retreats after reaching the new 14-year high of $48.77 reached in the previous session, trading around $47.90 per troy ounce during the early European hours on Tuesday. The technical analysis of the daily chart timeframe suggests the price of the precious metal moves upwards within an ascending channel pattern, strengthening the bullish bias.

Additionally, the XAG/USD pair is positioned above the nine-day Exponential Moving Average (EMA), indicating that short-term price momentum is stronger. However, the 14-day Relative Strength Index (RSI) remains above the 70 level, suggesting that the Silver price is trading within overbought territory and a potential for a downward correction.

On the upside, the XAG/USD pair may test the psychological level of $48.00, followed by the all-time high of $48.77. A break above this level would support the Silver price to test the upper boundary of the ascending channel at $49.40. A break above the channel would strengthen the bullish bias and support the pair to approach the psychological level of $50.00.

The primary support lies at the nine-day EMA of $47.00. A break below this level would dampen the short-term price momentum and prompt the Silver price navigate the region around the ascending channel's lower boundary at $44.10. Further declines below the channel would dampen the bullish bias and put downward pressure on the XAG/USD pair to reach the 50-day EMA of $42.13.

XAG/USD: Daily Chart