Silver Price Daily Forecast – Silver Continues Its Attempts To Settle Above $27.75

Silver Video 28.08.20.

Weak U.S. Dollar Provides Support To Silver

Silver continues its attempts to settle above the nearest resistance level at $27.75 as the U.S. dollar remains under pressure against a broad basket of currencies after Fed’s decision to target an average annual inflation of 2%.

The U.S. Dollar Index has settled below 92.50 and tried to get to the test of the recent lows near 92.10. Longer-term, the Fed will have to keep rates at the bottom for years to push inflation above 2%. Since environment will likely be bearish for the dollar and bullish for precious metals, including silver.

Gold is also gaining ground today as it attempts to settle above the 20 EMA at $1945. In case gold manages to settle above this level, it will gain additional upside momentum which would be bullish for the whole precious metal segment.

Meanwhile, gold/silver ratio remains in the range between 71 and 73. A move below the 71 level will likely lead to increased downside momentum which would be bullish for silver.

At this point, silver maintains solid chances to continue its current upside move after a period of consolidation. In order to gain more upside momentum, silver will likely need additional U.S. dollar weakness or gold’s move towards the $2000 level.

Technical Analysis

Silver continues to trade in a range between the support at $26.20 and the resistance at $27.75. Yesterday, silver made an attempt to settle above the resistance at $27.75 but this attempt was not successful, and silver returned back to the previous trading range.

In case silver manages to get above $27.75, it will gain additional upside momentum and head towards the next resistance at $28.50. RSI is in the moderate territory so there is plenty of room to gain more momentum. If silver settles above $28.50, it will have a chance to test the next resistance at multi-year highs at $29.85.

On the support side, the nearest support level is located at $26.20, near the 20 EMA. A move below the 20 EMA will be a major development for silver as it will indicate that the current upside momentum has come to an end. In this case, silver will move towards the next support at $24.95.

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