Silver Is Under Pressure
Silver failed to settle above the resistance at $22.60 and pulled back while the U.S. dollar gained ground against a broad basket of currencies.
The U.S. Dollar Index continues its attempts to settle above the resistance level at 94. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 94.20 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Gold has made another attempt to settle above the 20 EMA at $1765 but failed to develop sufficient upside momentum and declined towards the support level which is located at $1750. If gold manages to settle below this level, it will head towards the recent lows near $1720 which will be bearish for silver.
Gold/silver ratio remains stuck near the $78 level. If gold/silver ratio declines below this level, it will move towards the 20 EMA at 77.40 which will be bullish for silver.
Silver declined below $22.60 and is moving towards the nearest support level at $22.30. This support level has been tested during yesterday’s trading session and proved its strength.
In case silver settles below $22.30, it will head towards the next support at $22.10. A move below this level will open the way to the test of the support at $21.90. If silver declines below $21.90, it will continue its downside move and head towards the support at $21.65.
On the upside, silver needs to settle above $22.60 to have a chance to get to the test of the 20 EMA at $22.80. If silver manages to settle above the resistance at the 20 EMA at $22.80, it will head towards the next resistance level which is located at $23.20. A move above this level will push silver towards the resistance at $23.50.
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This article was originally posted on FX Empire
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