Silver Price Daily Forecast – Silver Gets Closer To $18.50

Silver Video 06.07.20.

U.S. Dollar Weakness Provides Additional Support To Silver

Silver enjoyed upside and headed towards the test of the nearest resistance level below $18.50 as the U.S. dollar lost ground against a broad basket of currencies while gold remained close to yearly highs.

The American currency is having a bad day as the U.S. Dollar Index declined below the 97 level. Previously, the U.S. Dollar Index has stayed in the range between 97 and 97.5. In case it manages to settle below 97, the U.S. Dollar Index may develop downside momentum.

This will be bullish for silver and other precious metals as weaker dollar makes them less expensive for buyers who have other currencies.

Meanwhile, gold continues its march towards $1800. While the stock market is very optimistic about the economic recovery, the continued upside in the gold market shows that traders want to protect themselves against a potential market sell-off. In addition, the rampant money-printing from the world central banks continues to provide support to the precious metal segment.

In a bullish move for silver, gold/silver ratio declined closer to 97 and stays below the 20 EMA at 98.90. Back at the beginning of June, gold/silver ratio was near 95, and a return to these levels will provide additional support to silver while the return to the pre-pandemic levels below 90 would be a major bullish catalyst.

Technical Analysis

Silver has managed to settle above $18.00 and continues its upside move. Currently, silver is trying to test the nearest resistance level below $18.50. The move to $18.50 has been gradual and silver formed a solid base so it has good chances to get above $18.50.

In this scenario, silver will likely get additional upside momentum and head towards the test of the major resistance level at $19.00. Silver has already been near $19.00 in January and February of 2020 but each attempt to get above this level was followed by a rapid sell-off. This time, silver has much better chances to get above $19.00.

On the support side, the nearest support level for silver is located at the 20 EMA at $17.75, followed by a major support level at $17.50.

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