Daily Silver Price Forecast – Resistance Test at $ 25.85


The money keeps going up

Silver is currently attempting to move above resistance at $ 25.85 as the US Dollar loses ground against a large basket of currencies.

The US dollar index has managed to break below the 90 support and continues its downtrend. Stimulus hopes put pressure on the US currency which is bullish for silver and gold prices today.

Gold has managed to break through resistance at the 50 EMA at $ 1865 and is heading towards the $ 1900 level. If gold does manage to settle above $ 1900, it will gain additional bullish momentum that will support silver and other precious metals.

The gold / silver ratio has fallen below the support level at 73.50 and continues its downtrend. The next significant support for the gold / silver ratio is at 71.50. If the gold / silver ratio passes the test of this level, silver will get an extra boost.

At this point, the market situation is favorable for silver as the weakness of the dollar and the falling gold / silver ratio provide sufficient support. If these catalysts remain in play over the next few trading sessions, silver will have a good chance of settling in the $ 26 to $ 27 range.

Technical analysis

Silver has taken a strong bullish momentum and is attempting to settle above resistance at $ 25.85. RSI is still in moderate territory, so there is plenty of room to build momentum in case the right catalysts emerge.

If the silver moves above the resistance at $ 25.85, it will head to the next resistance level at $ 26.30. A move above $ 26.30 will pave the way for the resistance test at $ 27.00. If the silver rises above $ 27.00, it will move to the next resistance level at $ 27.50.

On the support side, silver needs to come back below $ 25.85 for a chance to develop bearish momentum. If silver drops below this level, it will head to the next support at $ 25.55. A move below $ 25.55 will push silver towards support at $ 25.30. If silver drops below $ 25.30, it will test for support at $ 25.00.

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

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