Silver Price Daily Forecast – Silver Continues Attempts To Settle Above $17.50

Silver Video 17.06.20.

Silver Is Little Changed Amid Lack Of Catalysts

Silver is trading near the resistance level at $17.50 amid optimism in the equity markets and stronger U.S. dollar.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has settled above the 97 level. A stronger dollar is bearish for silver as it makes it more expensive for buyers who have other currencies.

The nearest important level for U.S. Dollar Index is 97.5. A move above this level could lead to increased upside momentum for the U.S. dollar and put some pressure on silver.

Meanwhile, gold stays above the key $1700 level but fails to get to the test of the next resistance at $1750. Gold/silver ratio has started to decline and is close to 98.

Currently, there are few catalysts to provide silver market with direction but the situation may change quickly if the U.S. dollar or gold experience a major move.

Technical Analysis

Silver is trying to get above the nearest resistance level at $17.50. Currently, silver does not have enough catalysts to provide it with sufficient momentum.

I’d note that the 20 EMA has risen to $17.35 which creates an interesting situation since silver finds itself in an extremely tight range between the nearest support at the 20 EMA and the resistance level at $17.50.

Typically, it is very hard to stay in such a range for any material period of time so silver will likely break out of this range soon. The direction of the breakout will be dependent on external catalysts but it should be noted that silver’s current trend is to the upside, so an upside breakout looks more likely.

If silver manages to settle above $17.50, it will gain upside momentum and head towards the next material resistance level below $18.50.

On the support side, a move below the 20 EMA will open the way to another test of the major support level at $17.00. I maintain my view that silver will need strong catalysts to get below the support at $17.00 since such a move would signal a change of trend.

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