Silver Price Daily Forecast – Silver Continues Its Rebound Despite Stronger U.S. Dollar

Silver Video 08.10.20.

Silver Tries To Gain Additional Momentum Above $24.00

Silver is currently trying to settle above $24.00 while the U.S. dollar is gaining ground against a broad basket of currencies. Interestingly, silver ignores dollar’s strength and continues its rebound.

The U.S. Dollar Index failed to settle below 93.50 and rebounded back above the 20 EMA at 93.65. It looks like talks about a stimulus package for airlines are supporting the American currency right now.

At the same time, stimulus hopes are also positive for precious metals so silver and gold are gaining ground today.

Gold gained some upside momentum and is trying to settle back above the $1900 level. The nearest resistance level for gold is located at the 50 EMA at $1905. In case gold manages to settle above the 50 EMA, it will gain upside momentum and head towards the $1950 level which will be bullish for gold.

Gold/silver ratio is currently trying to get to the test of the 50 EMA at 78.50. A move below this level will lead to increased downside momentum, pushing gold/silver ratio towards the 20 EMA at 78. This scenario will be bullish for silver.

Technical Analysis

Silver managed to get above $24.00 and tries to continue its upside move. The nearest significant resistance for silver is located at the 50 EMA at $24.55.

In case silver manages to get above the 50 EMA at $24.55, it will develop additional upside momentum and head towards the next resistance level at $25.85.

RSI is in the moderate territory so there is plenty of room to develop momentum. In addition, there are no major levels between $24.55 and $25.85, so silver may quickly get to the test of the resistance at $25.85 in case the right catalysts emerge.

If silver gets above the resistance at $25.85, it will head towards the next resistance area at $26.20 – $26.30 which may become a serious obstacle on the way up.

On the support side, silver’s nearest support level is still located at $23.30. In case silver settles below this level, it will gain downside momentum and head towards the test of the next support level at the recent lows at $22.90.

For a look at all of today’s economic events, check out our economic calendar.