Silver Gains Ground As U.S. Dollar Pulls Back From Yearly Highs

Key Insights

• U.S. Dollar Index failed to settle above the resistance level at 99.75 and pulled back, which was bullish for silver. 
• Meanwhile, gold moved closer to the resistance level at $1935.
• A move above the 50 EMA will push silver towards the resistance level at $24.70.

Silver ETF Gets Back To The 50 EMA

Silver  is currently trying to settle back above the resistance at $24.55, while the U.S. dollar is losing some ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the 50 EMA at $22.65.

The U.S. Dollar Index faced strong resistance at 99.75 and pulled back towards the support level at 99.45. In case the U.S. Dollar Index settles below this level, it will move towards the next support at 99.20, which will be bullish for silver and gold price today.

Gold  has recently made an attempt to settle below the support at $1915 but failed to develop sufficient downside momentum and remained stuck in the $1915 – $1935 range, while SPDR Gold Shares ETF moved towards the $180 level. If gold settles above $1935, it will head towards the next resistance level at $1950, which will be bullish for silver.

Gold/silver ratio declined below the 79 level after an unsuccessful attempt to settle above 79.50. If gold/silver ratio settles back below 79, it will gain additional downside momentum, which will be bullish for silver.

Technical Analysis

Silver is testing the resistance level at the 50 EMA at $24.55. If silver settles back above this level, it will move towards the next resistance at $24.70.

A successful test of the resistance at $24.70 will push silver towards the resistance at the 20 EMA at $24.85. In case silver moves above the 20 EMA, it will head towards the resistance level at $25.10.

On the support side, the nearest support level for silver is located at $24.25. In case silver declines below this level, it will head towards the support level at $23.90. A move below the support at $23.90 will open the way to the test of the next support at $23.70.

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