Silver video 01.20.21
The money keeps going up
Silver is currently testing resistance at the 20 EMA at $ 25.55 while the US Dollar is mostly stable against a large basket of currencies ahead of Joe Biden’s inauguration.
The US dollar index recently attempted to stabilize below the 20 EMA support at 90.35 but failed to develop sufficient bearish momentum and rebounded closer to 90.50. The next level of resistance for the US dollar index is at 90.70. If the US dollar index moves above this level, it will gain additional bullish momentum, which may put some pressure on silver and gold prices today.
Meanwhile, gold is testing resistance at the 20 EMA at $ 1865. The next resistance is located at the 50 EMA at $ 1870, so gold will likely face significant resistance in the $ 1865 – $ 1870 area. A move above this resistance zone will pave the way for the $ 1900 level which will be bullish for silver and other precious metals.
Silver has managed to break through the resistance at $ 25.30 and is trying to settle above the next resistance level at the 20 EMA at $ 25.55. If the silver manages to stabilize above this level, it will head to the next resistance at $ 25.85.
A move above this level will push silver towards resistance at $ 26.30. There are no significant levels between $ 25.85 and $ 26.30, and previous moves in this area have been rapid.
On the support side, the previous resistance level at $ 25.30 will likely serve as the first level of support for the silver. The next support level is located at 20 EMA at $ 25.20. If the silver drops below the 20 EMA, it will test for the next support level at $ 25.00. This support level has already been tested during the current trading session and has proven its strength, so silver may need additional catalysts to settle below $ 25.00.
For an overview of all of today’s economic events, check out our economic calendar.