Silver Price Daily Forecast – Silver Fails To Build Upside Momentum

Silver Video 18.06.20.

Silver Stays Near $17.50

Silver made an attempt to settle above the resistance at $17.50 but this attempt was unsuccessful. Meanwhile, the U.S. dollar continues to gain some ground against a broad basket of currencies while gold is mostly flat.

The recent release of the U.S. employment reports could provide some support to the safe haven assets. U.S. Initial Jobless Claims were 1.5 million while U.S. Continuing Jobless Claims were 20.5 million. Both numbers were higher than analysts expected and put some pressure on the U.S. equity market.

The U.S. Dollar Index stays above the 97 level as the American currency continues its rebound. This rebound is a bearish factor for silver but its current pace is not strong so silver has material chances for upside in case the right catalysts emerge.

Gold continues to trade in the $1700 – $1750 range which is good for the whole precious metal segment but an upside breakout will likely be necessary to provide other precious metals with sufficient upside momentum.

Gold/silver ratio stays at 99 below the 20 EMA at 99.30 and continues its attempts to get above 100, which would be bearish for silver.

Technical Analysis

Silver tries to get above the resistance level at $17.50 but the resistance is strong, and each attempt to settle above it is met with heavy selling. At the same time, the 20 EMA is at $17.35 so silver has a material support level in the nearby. It is almost impossible to stay in a very tight range for many days so we’ll likely see a breakout soon.

In case silver finally manages to settle above $17.50, it will gain upside momentum and head towards the next resistance at the recent highs below $18.50. RSI is at moderate levels so there’s plenty of room to build upside momentum.

On the support side, a move below the nearest support at the 20 EMA at $17.35 will lead to increased downside momentum. In this scenario, silver will head to test the major support level at $17.00. The 50 EMA continues to rise and will soon get closer to $17.00, so this level will get even more stronger. In such circumstances, a move below $17.00 will signal the change of a trend.

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