Silver (XAG) Forecast: Silver Bounces as Dollar Fails at Seven-Week High
Author: James Hyerczyk
Updated: September 20, 2026
Overview
Silver prices experienced a notable rally, increasing by $2.08 from $65.26 to $67.34, following a failure of the U.S. Dollar Index to maintain its seven-week high. The minor trend for silver is currently upward, but a breakthrough above $68.33 is necessary for the daily swing chart to indicate a main trend shift to bullish.
Market Dynamics
On Friday, silver's price settled at $66.26, marking an increase of 1.58%. The U.S. Dollar Index (DXY) ended the day slightly lower at 100.215, down 0.02%. The dollar's inability to extend its gains after reaching a high of 100.564 allowed silver to gain traction, as buyers stepped in when the dollar's momentum stalled.
Technical Analysis
The daily swing chart indicates that while the main trend remains down, the minor trend has shifted upward, supported by a close above the 50-day moving average at $62.97. A breach of the swing bottom at $62.31 would signal a resumption of the downtrend, while a move above the September 9 high at $68.33 would confirm a bullish trend change.
Key Levels
- Support (S1): 65.2992
- Pivot: 66.3183
- Resistance (R1): 67.2747
Market Sentiment
Despite the broader pressures from elevated yields and a strong dollar, silver managed to rally, indicating a shift in market sentiment. The dollar's failure to extend its rally provided a green light for silver buyers, who capitalized on the momentary stall in the dollar's strength.
Future Outlook
The immediate focus for silver traders will be the performance of the dollar. A sustained push above the recent high of 100.564 could put pressure back on silver prices. Conversely, if the dollar fails to extend its gains, silver may continue to build on its recent momentum towards the $68.33 level, which is critical for a trend reversal.
Conclusion
The current market dynamics suggest a cautious optimism for silver, with the potential for further gains if the dollar's strength falters. Traders should monitor key support and resistance levels closely to navigate the evolving market landscape.