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Silver Price Daily Forecast – Silver Gets Back Above The 20 EMA

By:
Vladimir Zernov
Published: Sep 9, 2020, 14:05 UTC

Silver managed to settle above the 20 EMA and tries to develop more upside momentum.

Silver

In this article:

Silver Video 09.09.20.

Silver Tries To Continue Its Rebound

Silver managed to stay above the 20 EMA at $26.75 as the U.S. dollar pulled back after the recent rebound.

Yesterday, silver made a very serious attempt to settle below the 20 EMA and traded as low as $25.85. However, it managed to rebound and stays near the key support at the 20 EMA.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, made an attempt to settle above 93.50 but failed to gain sufficient upside momentum and declined towards 93.25.

The key catalyst for this move was the rebound of GBP/USD which managed to gain some ground after a major sell-off which was caused by fears of hard Brexit.

If the U.S. Dollar Index continues to lose ground and gets to the support at the 20 EMA at 93.05, silver will likely gain more upside momentum.

Meanwhile, gold is trying to get above its 20 EMA at $1945. If this attempt is successful, gold will head towards the psychologically important $2000 level and provide support to the whole precious metal sector.

Gold/silver ratio is still located in the range between 71 and 73. Gold/silver ratio has been mostly stable for a month which is a bullish factor for silver since gold/silver ratio did not manage to rebound after a very strong downside move.

Technical Analysis

silver september 9 2020

Silver is currently trying to gain more upside momentum above the 20 EMA at $26.75. If this attempt is successful, silver will head towards the nearest resistance level at $27.75.

A successful test of the resistance at $27.75 will open the way to the next resistance level at $28.50.

On the support side, the 20 EMA will continue to serve as the first important support level for silver. Silver needs to settle below the 20 EMA to have a chance to develop more downside momentum.

The support at $26.20 did not present itself during the recent sell-off, so the next support level for silver is located at the recent lows at $25.85.

If silver manages to settle below this support level, it will move towards the next support at $24.95.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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