Silver Is Under Pressure As Dollar Tests Yearly Highs

Key Insights

• Silver is losing ground as the U.S. Dollar Index is testing the 101 level. 
• Gold/silver ratio is trying to settle above the 80 level, which is bearish for silver. 
• A successful test of the support at $24.25 will open the way to the test of the next support level at $24.00.

Silver ETF Retreats Ahead Of The Weekend

Silver is currently trying to settle below the support at $24.25, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to settle below $22.50.

The U.S. Dollar Index is testing the resistance near the 101 level. A move above this level will push the U.S. Dollar Index towards the resistance at 101.35, which will be bearish for silver and gold price today.

Gold  failed to settle above $1950 and is testing the support level at $1935, while  SPDR Gold Shares ETF  is trading below $181.50. In case gold declines below the $1935 level, it will move towards the support at the 50 EMA at $1925, which will be bearish for silver.

Gold/silver ratio is testing the 80 level. In case gold/silver ratio manages to settle above this level, it will gain additional upside momentum and move closer to the 81 level, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $24.25. If this test is successful, silver will head towards the support level, which is located near the recent lows at $24.00.

A successful test of the support at $24.00 will open the way to the test of the next support at $23.70. In case silver declines below this level, it will head towards the support level at $23.50.

On the upside, the nearest resistance level for silver is located at $24.50. In case silver settles back above this level, it will head towards the 50 EMA at $24.75. A move above the 50 EMA will open the way to the test of the next resistance at the 20 EMA at $25.00.

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