A weaker US dollar supports money
Silver is currently trying to move above the nearest resistance level at the 50 EMA at $ 24.15 as the US Dollar loses ground against a large basket of currencies.
The US dollar index tries to test the annual lows at 90.50. If the US dollar index manages to stabilize below this level, it will head towards the 90 level which could support silver and gold prices today. A weaker dollar is generally bullish for precious metals, as it makes them cheaper for buyers who have other currencies.
Meanwhile, gold is trying to move above resistance at the 20 EMA at $ 1845. A move above the 20 EMA will push gold towards the next resistance level at the 50 EMA at $ 1865 which will be bullish for silver.
The Gold / Silver ratio is currently near the major support level at 75.50. This is a very interesting time for silver traders as the gold / silver ratio is likely to develop a strong bearish momentum if it manages to settle below 75.50. In this scenario, the gold / silver ratio will head towards 73.50 which will provide material support for silver.
Silver has gained momentum on the upside and is trying to settle above the major resistance level at the 50 EMA at $ 24.15. The RSI is in moderate territory so there is plenty of room for some upside momentum.
The next level of resistance for silver is located at $ 24.60. If silver settles above $ 24.60, it will head towards resistance at $ 25.00.
A successful test of resistance at $ 25.00 will push silver towards the next resistance at $ 25.30. If silver breaks above $ 25.30, it will move towards resistance from the October highs at $ 25.55.
On the support side, the previous resistance at 50 EMA will likely serve as the first level of support for the silver. If the silver drops below the 50 EMA, it will move to the main support area between $ 23.50 and $ 24.00. Silver will need to settle below the support at $ 23.50 in order to develop bearish momentum.
For an overview of all of today’s economic events, check out our economic calendar.