Silver Price Forecast: XAG/USD breakout strength lies past $25.25

The [[XAG/USD]]  pair has recently experienced a pullback from its highest level since May, which was around the region of $25.25. This retreat indicates the presence of significant resistance at that level, leading to a decline in prices. However, amidst this correction, the bulls have shown resilience by holding strong above the psychological support level of $25. This suggests that there is considerable buying interest in the market at this price point, potentially supporting the pair’s recent upward trajectory witnessed over the past month.

Looking at the price chart, the $25 level underneath is deemed as a significant support level. The fact that buyers are likely to return in the general vicinity of this support strengthens the argument for a potential continuation of the uptrend. Traders should keep a close eye on how the pair behaves around this level, as it could be crucial in determining the short-term direction.

Moving forward, the daily swing high of around $25.25 poses an immediate hurdle for the [[XAG/USD]] pair. 

If the bulls manage to push the price above this level, it opens the possibility for the pair to target the resistance zone of $25.50-$25.55, and subsequently, aim for the $26.00 round figure. Beyond that, there’s the year-to-date peak in the range of $26.10-$26.15, which marks a key resistance level touched back in May.

On the other hand, should the pair experience a downward move, the next significant demand level to watch is around $24.75. If this level holds, it could act as a critical support and deter further downside momentum. However, failing to hold at $24.75 may lead to increased selling pressure, bringing attention to the $24.50 level. With the current price hovering around $24.838, a break below $24.50 could trigger a strong downswing, potentially opening the gates for further losses.

Additionally, traders should be mindful of a key resistance level that has now turned into support. This level may play a significant role in influencing the market sentiment and could attract buyers, helping to mitigate significant declines.

In conclusion, the technical analysis of [[XAG/USD]] presents a mixed picture, with signs of both bullish and bearish sentiment. The recent retreat from the highs suggests resistance in the market, but the psychological support at $25 and the $25 level below offer hope for further upward movement. 

Traders should pay attention to the $25.25 area, $24.75, and the critical $24.50 level to gauge the pair’s short-term direction. Keeping an eye on market sentiment and any potential follow-through buying will be crucial in assessing whether the recent rebound can extend further or face stronger headwinds.

CFDs on Silver forecast Chart