Silver video 05.02.21.
Money goes up on a weaker dollar
Silver is currently attempting to move above resistance at $ 26.70 as the US dollar loses ground against a large basket of currencies.
The US dollar index failed to stay above the resistance level at 91.50 and retreated to the nearest support level at 91.30. If the US dollar index moves below 91.30 it will head to the next support at 91.10 which will be bullish for silver and gold prices today. A weaker dollar supports precious metals because it makes them cheaper for buyers who have other currencies.
Meanwhile, gold attempted to settle above the $ 1800 level but lost momentum and sank below that level. The recent price development in the gold market is worrying for silver buyers as gold remains under material pressure and every attempt to gain momentum upwards yields no results.
The gold / silver ratio is trying to stabilize below the low end of the recent range between 68 and 69. This is an interesting development as the recent drop in the gold / silver ratio was triggered by an increase in activity. speculative retail traders who mainly come to an end. If the gold / silver ratio gains further bearish momentum, silver will gain more support.
Silver managed to settle above the 20 EMA at $ 26.25 and is testing the resistance level at $ 26.70. If this test is successful, the silver will move to the next resistance level at $ 27.00.
A move above the resistance at $ 27.00 will pave the way for the resistance test at $ 27.50. If silver does manage to break above that level, it will head to the next resistance level at $ 27.75.
On the support side, the closest support level for silver is located at 20 EMA at $ 26.25. If the silver drops below this level, it will head to the next support level at $ 25.85. A move below $ 25.85 will push silver to the next support at the 50 EMA at $ 25.70.
For an overview of all of today’s economic events, check out our economic calendar.