Daily Silver Price Forecast – Support at $ 23.90 remains strong

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Money is mostly flat despite the weak dollar

Silver continues its attempts to settle below the support level at $ 23.90 as the US dollar loses ground against a large basket of currencies.

The US dollar index is currently trying to break below the 20 ERA at 93.80. If this attempt is successful, the US dollar index will head to the next support level at 93.50 which will be bullish for silver and gold prices today. A weaker dollar is bullish for precious metals because it makes them cheaper for buyers who have other currencies.

Meanwhile, gold has received support near the 50 EMA at $ 1780 and is trying to move closer to the $ 1800 level. A move above this level will push gold to recent highs near $ 1,815 which will be bullish for silver.

The gold / silver ratio recently managed to settle above the 74 level and attempted to settle above 74.50. If the gold / silver ratio manages to stabilize above this level, it will move to the 75 level which will be bearish for silver.

Technical analysis

Silver tested the support level at $ 23.90 but this test yielded no results and silver returned above the $ 24 level. The closest resistance level for silver is at $ 24.30.

If the silver crosses back above the resistance at $ 24.30, it will head to the next resistance level which is located at $ 24.50. A move above the resistance at $ 24.50 will pave the way for testing the next resistance level at $ 24.80.

On the support side, silver needs to settle below support at $ 23.90 to have a chance to develop short-term bearish momentum. The next level of support for silver is at the 50 EMA at $ 23.60.

If silver drops below the 50 EMA, it will gain additional bearish momentum and head towards the support level at $ 23.20. A successful test of the support at $ 23.20 will push the silver to the next support at $ 23.00.

For an overview of all of today’s economic events, check out our economic calendar.

This article originally appeared on FX Empire

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