Silver Price Daily Forecast – Silver Declines Towards $27.00

Silver Video 20.08.20.

U.S. Dollar Rally Puts Pressure On Silver

Silver declined below $27.00 after yesterday’s FOMC Minutes did not indicate that the Fed was ready to take additional measures to boost inflation. The Fed also noted that it was surprised by the strength of household spending.

These remarks were sufficient enough to provide serious support to the U.S. dollar. The U.S. Dollar Index, which measures the strength of the American currency against a broad basket of currencies, has managed to get above the resistance at the 93 level and continues its attempts to move higher.

Not suprisingly, precious metals found themselves under significant pressure after U.S. dollar’s rapid moves.

Gold has declined below $1950 per ounce and is currently trying to settle below the 20 EMA. If this happens, gold may experience more downside pressure which would be bearish for silver.

Meanwhile, gold/silver ratio remained mostly flat near 72. Gold/silver ratio has stabilized near this level in recent trading sessions which may indicate that traders try to find a new balance after the rapid downside move which happened in recent months.

Most likely, the dynamics of the U.S. dollar will continue to play a major role in silver trading in the upcoming trading sessions.

Technical Analysis

Silver is currently trying to find some support near $27.00. In case silver does not manage to stay near this level, it will head towards the next support level which is located at $26.20.

In case silver gets below $26.20, it will head to the test of the 20 EMA at $25.65. A move below the 20 EMA will likely present a serious problem for silver bulls as it will indicate that silver has lost upside momentum.

In this scenario, silver will continue to decline towards the next support level at $24.95.

On the upside, the nearest resistance for silver is located at $27.75. During today’s trading session, silver tried to get to the test of this level but faced resistance near $27.50 and pulled back.

If silver manages to settle above $27.75, it will head towards the next resistance level near $28.50.

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