Silver Price Daily Forecast – Silver Gets Back To The 50 EMA Level

Silver Video 09.12.20.

Silver Lost Upside Momentum

Silver gained downside momentum and is trying to settle below the 50 EMA at $24.15 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the 91 level and pulled back closer to 90.80. Typically, weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

However, the weakness of the American currency failed to provide support to silver and gold price today as traders were focused on recent U.S. stimulus news and the success of China’s Sinopharm COVID-19 vaccine. As a result, safe haven assets like gold and silver found themselves under pressure.

Gold failed to settle above the 50 EMA at $1870 and is moving towards the nearest support level at the 20 EMA at $1850. If gold settles below the 20 EMA, it will gain downside momentum and head towards the next support level at $1815 which will be bearish for silver.

Gold/silver ratio is trying to get above the nearest resistance level at the 20 EMA at 76.95. If this attempt is successful, gold/silver ratio will move towards the 50 EMA at 77.50 which will put additional pressure on silver.

Technical Analysis

In recent trading sessions, silver made two attempts to settle above the resistance at $24.60 but failed to develop sufficient upside momentum and pulled back.

Currently, silver is testing the nearest support level at the 50 EMA at $24.15. The 50 EMA has previously served as a major obstacle on the way up for silver, and this level will likely attract plenty of interest on the way down.

If silver settles below the 50 EMA, it will get to another test of the next support level at the 20 EMA at $24.00. A move below the 20 EMA will push silver towards the next support level which has recently emerged near $23.50.

On the upside, silver needs to stay above the 50 EMA to continue its upside move. The nearest significant resistance level for silver is still located at $24.60. In case silver gets above this level, it will head towards the resistance at $25.00.

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