Silver is currently trying to settle back above the resistance at $23.50 while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the resistance at $21.80.
The U.S. Dollar Index has recently made an attempt to settle below the 50 EMA at 95.80 but failed to develop sufficient downside momentum. In case the U.S. Dollar Index manages to settle below the 50 EMA, it will head towards the support level at 95.40 which will be bullish for silver and gold price today.
Gold received strong support near $1845 and moved back above $1860 while SPDR Gold Trust tested the $174 level. In case gold settles above $1860, it will move towards the resistance level at $1875 which will be bullish for silver.
Gold/silver ratio is testing the support level at the 20 EMA at 78.90. If gold/silver ratio settles below the 20 EMA, it will head towards the support at the 50 EMA near 78.50 which will be bullish for silver.
Silver is testing the resistance level at $23.50. In case silver manages to settle above this level, it will head towards the next resistance at $23.70.
A move above the resistance at $23.70 will open the way to the test of the resistance which is located at the recent highs at $24.00. In case silver gets above the resistance at $24.00, it will head towards the next resistance level at $24.20.
On the support side, silver needs to stay below $23.50 to have a chance to gain downside momentum in the near term. The next support level for silver is located at the 20 EMA at $23.20. The 50 EMA is located in the nearby, so silver will likely receive material support in this area.
A move below the 20 EMA and the 50 EMA will push silver towards the $23.00 level. In case silver declines below $23.00, it will move towards the next support level at $22.80.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.