Silver Declines As Pullback Continues

Key Insights

• Silver continues to move lower, while gold has managed to settle below the support at $1950.
• Meanwhile, gold/silver ratio is trying to settle above the 50 EMA, which is bearish for silver. 
• A successful test of the support at $25.10 will push silver back towards the support level at $24.90.

Silver ETF Remains Under Pressure

Silver  is currently trying to settle below the support level at $25.10, while the U.S. dollar is under pressure against a broad basket of currencies. Meanwhile, iShares Silver Trust declined below $23.20.

The U.S. Dollar Index has rcently managed to get below the support level at 100.50 and tested the next support at 100.30. In case the U.S. Dollar Index declines below 100.30, it will gain additional downside momentum and head towards the 100 level, which may provide some support to silver and gold price today.

Gold managed to settle below the support at $1950 and made an attempt to get to the test of the $1935 level, while SPDR Gold Shares ETF moved closer to the $181.50 level. In case gold settles below $1935, it will head towards the 50 EMA at $1925, which will be bearish for silver.

Gold/silver ratio continues to move higher and is currently trying to settle above the 50 EMA at 77.70. In case this attempt is successful, gold/silver ratio will gain additional upside momentum, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at the 20 EMA at $25.10. In case silver manages to settle below this level, it will get to another test of the next support level, which is located at $24.90.

A move below the support at $24.90 will push silver towards the next support at the 50 EMA at $24.75. if silver declines below the 50 EMA, it will head towards the support at $24.50.

On the upside, a move above the 20 EMA will open the way to the test of the resistance at $25.30. If silver moves back above this level, it will head towards the next resistance level at $25.60. A successful test of the resistance at $25.60 will push silver towards the resistance at $25.80.

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