Silver Price Daily Forecast – Silver Collapses As Dollar Gets To Monthly Highs
Silver Is Under Huge Pressure
Silver is currently trying to settle below the support at $22.90 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index gained strong upside momentum after Retail Sales report indicated that Retail Sales increased by 0.7% month-over-month in August. Continuing Jobless Claims declined from 2.85 million to 2.67 million, which served as an additional positive catalyst for the American currency. As a result, the U.S. Dollar Index managed to get above the resistance at 92.80 and moved closer to the 93 level. In case the U.S. Dollar Index manages to settle above this level, it will head towards the resistance at 93.10 which will be bearish for silver and gold price today.
Meanwhile, gold managed to get below the major support level at $1775 and is testing the next support level at $1750. In case gold settles below this level, it will head towards the next support at $1720 which will be bearish for silver.
Gold/silver ratio is currently trying to settle above the 77 level. In case gold/silver ratio settles above this level, it will move towards August highs near 77.65 which will be bearish for silver.
Silver has recently tried to get to the test of the support level at $22.60 but failed to develop sufficient downside momentum and remains in the $22.60 – $22.90 range.
In case silver declines below the support at $22.60, it will head towards the next support at $22.30. RSI remains in the moderate territory despite the huge sell-off so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If silver settles below the support at $22.60, it will move towards the next support at $22.30. A successful test of this level will open the way to the test of the support at $22.10.
On the upside, a move above $22.90 will push silver towards the resistance level at $23.20. In case silver manages to settle above this level, it will head towards the next resistance at $23.50.
For a look at all of today’s economic events, check out our economic calendar.