Silver Price Daily Forecast – Silver Remains Weak Heading into the Weekend

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Silver ETF remains under pressure

Silver continues its attempts to settle below support at $22.10 as the US Dollar loses ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.50.

The U.S. dollar index gained downward momentum after the Nonfarm Payrolls report said the U.S. economy added 199,000 jobs in December compared to analysts’ consensus of 400,000. The US Dollar Index recently managed to break below the support level at 96 and is heading towards the next support level at 95.75. A move below this level will push the US Dollar Index towards the 50 EMA at 95.65, which will be bullish for the price of silver and gold today.

Gold continues to trade below the $1800 level as SPDR Gold Trust tries to break back below $167.00. If gold drops below $1785, it will head towards the support level at $1775, which will be bearish for silver.

The gold/silver ratio continues its attempts to settle above the 81 level. A successful test of this level will push the gold/silver ratio towards 82 which will be bearish for silver.

Technical analysis

Silver is testing the support level at $22.10. If this test passes, silver will head towards the next support at $21.90. The RSI remains in the moderate territory, and there is ample room to gain further momentum on the downside.

In case silver manages to settle below the support at $21.90, it will head towards the next level of support which is located at $21.50. A break below this level will open the way to test the support at $21.30.

On the upside, silver needs to break above $22.30 to have a chance to develop near-term bullish momentum. The next resistance level for silver is located at $22.60.

If silver settles above $22.60, it will move towards the 20 EMA which sits near $22.75. A successful test of the resistance at the 20 EMA will push silver towards the next resistance level at $22.90.

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

This article originally appeared on FX Empire

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