Silver Tests Resistance At $26.30
Silver is currently testing the resistance level at the 20 EMA at $26.30 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is trying to settle below the support level at 92.40. If the U.S. Dollar Index manages to settle below this level, it will move towards the next support at 92.15 which will be bullish for silver and gold price today.
Gold managed to get above the 50 EMA at $1815 and developed additional upside momentum. Currently, gold is trying to settle above $1830. In case this attempt is successful, gold will move towards the $1850 level which will be bullish for silver and other precious metals.
Gold/silver ratio faced significant resistance near 69.70 and moved closer to the 69 level. If gold/silver ratio declines below this level, it will head towards the 20 EMA at 68.60 which will be bullish for silver.
Today, weaker dollar and falling Treasury yields provide significant support to silver, and it has a good chance to get out of the $25.80 – $26.30 range and develop additional upside momentum.
Silver is testing the nearest resistance level which is located at the high end of the $25.80 – $26.30 range. If silver manages to settle above this level, it will move towards the next resistance at the 50 EMA at $26.55.
A move above the resistance at the 50 EMA will open the way to the test of the next resistance level which is located at $27.00. In case silver gets above $27.00, it will head towards the resistance at $27.25.
On the support side, silver needs to settle below the support level at $25.80 to have a chance to develop downside momentum in the near term. Most likely, silver will need additional catalysts to settle below this level as the support at $25.80 has been tested many times and proved its strength.
If silver declines below $25.80, it will head towards the support at $25.50. A move below $25.50 will push silver towards the support at $25.30.
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This article was originally posted on FX Empire