Silver ETF gains traction as dollar falls
Silver continues its attempts to move above the resistance level at $ 22.60 as the US dollar comes under pressure against a large basket of currencies. Meanwhile, iShares Silver Trust attempted to break above the $ 21 level.
The US Dollar Index recently managed to break below 96.50 and is attempting to break below the next support level at 96.25. If this attempt is successful, the US dollar index will head to the next support level at 96, which will be bullish for silver and gold prices today.
Gold remains stuck in a very narrow range between $ 1785 and resistance at the 50 EMA at $ 1795 while SPDR Gold Trust tries to move below the 20 EMA at $ 167.30. If gold falls below $ 1785 it will move to the support level at $ 1775 which will be bearish for silver.
The gold / silver ratio has settled below 79.50 and is trying to settle below the 20 EMA at 79.05. If the gold / silver ratio manages to stabilize below this level, it will gain additional bearish momentum which will be bullish for silver.
Silver continues to test the major resistance level at $ 22.60. If the silver manages to stabilize above this level, it will pass the test of the next resistance which is at $ 22.75.
A move above the resistance at $ 22.75 will push the silver towards the resistance level at $ 22.90. In case the silver stabilizes above this level, it will head to the next resistance which is near the 50 EMA at $ 23.20.
On the support side, silver needs to stabilize below the support level at $ 22.30 to have a chance to develop short-term bearish momentum. The RSI remains in moderate territory, so there is plenty of room to gain additional bearish momentum in case the right catalysts emerge.
If the silver drops below this level, it will head towards the support at $ 22.10. A successful test of the support at $ 22.10 will push the silver towards the next support at $ 21.90.
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This article originally appeared on FX Empire
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