Silver Moves Towards $23 As Dollar Declines

Silver ETF Gained Ground After U.S. Inflation Reports

Silver is currently trying to settle above the resistance at the 50 EMA while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle above the 50 EMA near $21.30.

The U.S. Dollar Index gained strong downside momentum after U.S. inflation reports met analyst expectations. The U.S. Dollar Index has already managed to settle below the support level at 95.40 and is testing the next support at 95.20. in case this test is successful, the U.S. Dollar Index will move towards the support at 95 which will be bullish for silver and gold price today.

Gold managed to settle above the resistance at $1815 and is trying to get to the test of the next resistance level at $1830 while SPDR Gold Trust managed to get above the $170 level. In case gold gets to the test of the $1830 level, silver will gain additional upside momentum.

Gold/silver ratio is currently testing the support level at the 20 EMA at 79.30. In case gold/silver ratio declines below the 20 EMA, it will move towards the 79 level which will be bullish for silver.

Technical Analysis

Silver managed to get above the resistance at $22.90 and is trying to settle above the 50 EMA. In case this attempt is successful, silver will move towards the next resistance which is located at $23.20.

A successful test of the resistance at $23.20 will push silver towards the next resistance at $23.50. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If silver gets above $23.50, it will head towards the resistance at $23.70.

On the support side, the previous resistance at $22.90 will serve as the first support level for silver. In case silver settles back below this level, it will head towards the support at the 20 EMA at $22.75. A move below the 20 EMA will push silver towards the support at $22.60.

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