Silver ETF rebounds after yesterday’s liquidation
Silver is currently trying to break back above resistance at $ 22.90 as the US Dollar is rising against a large basket of currencies. Meanwhile, iShares Silver Trust is trying to settle above $ 21.30.
The US dollar index is currently stuck in the range between support at 96.25 and resistance at 96.50. If the US dollar index manages to stabilize below 96.25, it will fall back to support at 96 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.
Gold has received strong support near $ 1,800 and is heading towards resistance at $ 1,815 as SPDR Gold Trust tries to move back above the $ 169 level. If gold manages to stabilize above $ 1,815, it will head to the next resistance level at $ 1,830 which will be bullish for silver.
The Gold / Silver ratio recently made another attempt to settle above the 79 level, but failed to develop sufficient bullish momentum and pulled back. If the Gold / Silver ratio drops below 78.50 it will head towards the 50 EMA at 77.90 which will be bullish for Silver.
It should be noted that Treasury yields continued to rise today, but this move did not put pressure on silver and gold.
Silver is currently trying to pass the resistance test which is at the 50 EMA near $ 23.15. In case the silver stabilizes above this level, it will head to the next resistance at $ 23.50.
A successful test of resistance at $ 23.50 will push silver towards the next resistance level at $ 23.70. If silver breaks above this level, it will move towards resistance at $ 23.90.
On the support side, the closest support level for silver is at $ 22.90. In the event that the silver drops below this level, it will test the support at $ 22.75. A successful test of this level of support will pave the way for the test of support which is near the recent lows at $ 22.60.
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This article originally appeared on FX Empire
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