Silver Price Forecast: XAG/USD bearish correction finds support at $34.00

• Silver corrects lower on Tuesday amid a stronger US Dollar.
• The broader trend remains positive, with bears limited above $34.00.
• XAG/USD faces significant resistance ahead of the $35.00 level.

Silver prices (XAG/USD) are trading lower on Tuesday's European session, weighed by a somewhat firmer US Dollar, as the risk-off mood witnessed on Monday seems to have eased.

The precious metal hit fresh six-month highs on Monday, with the US Dollar hammered by renewed tariff concerns and downbeat US data. The US Manufacturing PMI confirmed the negative impact of tariffs on factory activity and pushed the US Dollar to fresh multi-month lows.

Technical analysis: Silver's broader trend remains positive

From a wider perspective, price action remains positive. The reversal from $34.75 has been contained at the 34.00 round level, above the previous resistance, now a potential support area, at $33.70.

On the upside, the area between $34.75 and $35.00 contains several resistance levels (October 23 and June 4 highs), and the 161.8% Fibonacci extension of the Mid may rally, and might be a tough nut to crack.

Above here, a late 2012 peak lies at $35.40. The 2611.8% Fiboinnacci retracement is at $37.00.

On the downside, immediate support is at the mentioned $33.70 and then at the $32.65-$32.75 zone.

XAG/USD 4-Hour Chart