Silver Price Daily Forecast – Silver Failed To Settle Below The Support At $27.75

Silver Video 02.06.21.

Silver Stays Range-Bound

Silver has recently made an attempt to settle below the support at $27.75 but failed to develop sufficient downside momentum and rebounded towards $28.00 while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index tested the resistance at the 20 EMA at 90.20 but lost momentum and pulled back towards the 90 level. In case the U.S. Dollar Index settles back below the 90 level, it will move towards the support at 89.75 which will be bullish for silver and gold price today.

Meanwhile, gold stays close to the $1900 level. RSI is in the overbought territory but there is still some room to gain additional upside momentum. If gold manages to stay above the $1900 level, it will head towards the resistance at $1930 which will be bullish for silver.

Gold/silver ratio has moved back above the 50 EMA at 67.90 after an unsuccessful attempt to settle below the 20 EMA at 67.75. The nearest significant resistance level for gold/silver ratio is located at 68.70. In case gold/silver ratio gets to the test of this level, silver will find itself under pressure.

Technical Analysis

Silver received strong support at $27.75 and rebounded closer to the $28.00 level. In case silver manages to settle above $28.00, it will head towards the resistance at $28.30.

In case silver manages to settle above this level, it will move towards the next resistance level which is located at $28.90, although it should be noted that recent attempts to gain upside momentum above $28.30 were stopped at $28.75 and $28.55. If silver settles above $28.90, it will head towards the next resistance level at $29.30.

On the support side, the nearest support level for silver is located at $27.75. A successful test of this level will open the way to the test of the next support at $27.55. If silver declines below this level, it will move towards the next support level which is located at $27.00.

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