Silver has recently made an attempt to settle above the resistance at the 20 EMA at $22.80 but lost momentum and pulled back towards the support at $22.60 while the U.S. dollar lost some ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle below the support level at 94.20. If this attempt is successful, the U.S. Dollar Index will move towards the next support at 94 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them less expensive for buyers who have other currencies.
Meanwhile, gold is still stuck in a very tight range between the support at $1750 and the resistance at $1765. While other markets have been volatile in recent days, the gold market is in a hibernation mode. In case gold declines below the $1750 level, it will head towards the support at $1720 which will be bearish for silver.
Gold/silver ratio is currently trying to settle below the support at the 20 EMA at 77.45. A move below this level will open the way to the test of the 77 level which will be bullish for silver.
Silver is currently trading in the range between the support at $22.60 and the resistance at $22.80. If silver settles above the resistance at $22.80, it will gain upside momentum and head towards the next resistance at $23.20.
A successful test of the resistance level at $23.20 will open the way to the test of the next resistance which is located near the 50 EMA at $23.50. If silver gets above the 50 EMA, it will move towards the resistance at $23.90.
On the support side, silver needs to settle below the support at $22.60 to have a chance to develop downside momentum in the near term. The next support level for silver is located at $22.30.
If silver declines below $22.30, it will head towards the support at $22.10. A move below this level will push silver towards the support at $21.90.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.