Silver Price Daily Forecast – Test Of Support At $26.70
Silver Video 26.02.21.
Silver Is Under Pressure
Silver is currently trying to settle below the support at $26.70 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to settle above the resistance at 90.50 and made an attempt to settle above the next resistance level at the 50 EMA at 90.65. If the U.S. Dollar Index gets above the 50 EMA, it will continue its upside move and head towards the 91 level which will be bearish for silver and gold price today. Strong dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Gold has recently managed to get below yearly lows at $1760 and is heading towards the $1750 level. If gold settles below this level, it will gain additional downside momentum which will be bearish for silver and other precious metals.
Gold/silver ratio failed to settle below the 64 level and rebounded towards 65.50. If gold/silver ratio manages to settle above this level, it will head towards the 20 EMA at 66.50 which will be bearish for silver.
Technical Analysis
Silver managed to get below the $27 level and is currently testing the support at $26.70. In case silver manages to settle below this level, it will head towards the next support at the 50 EMA at $26.45. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If silver declines below the support at the 50 EMA at $26.45, it will move towards the next support at $25.85. It remains to be seen whether any levels will present themselves between $25.85 and $26.45.
On the upside, a move above the $27 level will push silver towards the 20 EMA at $27.15. A move above this level will open the way to the test of the next resistance at $27.50. In case silver settles above $27.50, it will head towards the resistance at $27.75.
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This article was originally posted on FX Empire
