XAG/USD Pullback Intensifies Below $76: What Traders Should Watch

Silver Price Faces Selling Pressure Amid Shifting Market Focus

Silver’s uptrend momentum is showing signs of fatigue as XAG/USD extends its decline from mid-week peaks near $83.00, now hovering around $76.00. While geopolitical developments in Venezuela and the China-Japan tensions initially supported precious metals, the market’s attention has pivoted sharply toward US economic data, particularly Friday’s crucial Nonfarm Payrolls report and upcoming Federal Reserve policy signals.

Technical Deterioration Signals Deeper Correction Risk

The silver price has broken below key resistance levels, currently trading near $75.98 and testing the 50-period SMA at $75.79—a dynamic support that has held during the recent uptrend since late November. However, weakening momentum indicators suggest this support may not hold indefinitely.

Key Technical Signals:

• RSI at 46: The Relative Strength Index has cooled considerably from overbought territory, indicating waning buying pressure
• MACD Red Flag: The Moving Average Convergence Divergence has crossed below its signal line and entered negative territory, with a deepening negative histogram reinforcing bearish conviction
• Support Levels: Breaking below $75.79 could trigger acceleration toward late-December lows around $70.50, adding approximately 6% downside risk

Resistance and Upside Barriers

Bulls remain capped by the $78.00 zone for now, which continues to block attempts to reclaim Wednesday’s highs near $82.80. The all-time peak of $85.87 from late December now appears increasingly distant unless momentum reverses decisively.

The convergence of deteriorating technicals and shifting market dynamics suggests traders should monitor the $75.79 support closely—a breakdown here could trigger a more significant correction in the silver price over coming sessions.