Silver Remains Under Pressure
Silver continues its attempts to settle below the support at $22.30 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has managed to settle above the resistance at 94.20 and made an attempt to get to the test of the yearly highs at 94.50. In case the U.S. Dollar Index manages to settle above 94.50, it will gain additional upside momentum which will be bearish for silver and gold price today.
Meanwhile, gold managed to stay above the nearest support level at $1750 as demand for safe haven assets increased. The nearest resistance level for gold is located at the 20 EMA at $1765. In case gold manages to settle above this level, it will move towards the next resistance at $1775 which may provide some support to silver.
Gold/silver ratio received strong support near the 78 level and moved back above 78.50. If gold/silver ratio settles above this level, it will head towards the next resistance at 79 which will be bearish for silver.
Silver continues to test the support at $22.30. This support level has already been tested several times but silver failed to gain additional downside momentum.
In case silver manages to settle below $22.30, it will move towards the support at $22.10. A successful test of the support at $22.10 will open the way to the test of the support at $21.90. If silver gets below this level, it will head towards the next support level at $21.65.
On the upside, the nearest resistance level for silver is located at $22.60. In case silver settles back above this level, it will move towards the next resistance at the 20 EMA at $22.80. A move above this level will open the way to the test of the resistance at $23.20. If silver gets above the resistance at $23.20, it will head towards the resistance at $23.50.
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This article was originally posted on FX Empire