Silver Price Forecast: XAG/USD faces rejection near $70.00 as upside momentum fades

The silver price (XAG/USD) faces potential rejection near the $70.00 mark as downward momentum intensifies on Tuesday. The metal slides to the mid-$67.00 range during the initial European session session, though the technical setup suggests caution before positioning for further retracements from a two-month high reached last Friday.

XAG/USD maintains a bullish near-term outlook following a breakout above the $66.55-$66.60 resistance level last week. The white metal also stays well above the 200-period Simple Moving Average (SMA) on the 4-hour chart, indicating that the overarching uptrend remains intact. Meanwhile, the Relative Strength Index (RSI) approaches the neutral 50 level, while the Moving Average Convergence Divergence (MACD) moves into negative territory, signaling waning upside pressure rather than a complete reversal.

Immediate support lies at the $67.00 level, followed by the $66.60-$66.55 resistance zone where recent buying attempts to stabilize the pullback. A deeper decline would expose the 200-period SMA at $61.30 as the next critical technical support, potentially prompting reassessment of the broader bullish structure if broken decisively.

Bulls may wait for sustained strength and confirmation above the $70.00 mark before positioning for additional gains towards the $71.00 level and the $71.55 hurdle. A decisive move beyond this point could pave the way for further gains beyond the $72.00 mark, heading toward the $72.55 intermediate resistance, then the $73.00 region, and ultimately the $73.40 area.