Silver Price Daily Forecast – Silver Gets Strong Support Near 20 EMASilver rebounds after unsuccessful attempt to settle below the 20 EMA.
Silver Video 10.12.20.
Silver Rebounds After Yesterday’s Sell-Off
Silver made an attempt to settle below the 20 EMA at $24.00 while the U.S. dollar found itself under pressure against a broad basket of currencies.
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The U.S. Dollar Index has recently made an attempt to settle above the nearest resistance at the 91 level but failed to develop upside momentum. At the same time, the U.S. Dollar Index continues to get support near 90.80.
If the U.S. Dollar Index declines below this level, it will have a good chance to develop downside momentum and move towards yearly lows at 90.50 which will be bullish for silver and gold price today.
Gold is trying to settle above the nearest resistance level at the 20 EMA at $1845. If gold manages to get back above this level, it will head towards the next resistance at the 50 EMA at $1865 which will be bullish for silver.
Gold/silver ratio did not manage to settle above the resistance at the 20 EMA at 76.90 and pulled back closer to the nearest support level at 76.50. It should be noted that gold/silver ratio has mostly traded in a range between 75.50 and 77 and had little impact on silver price dynamics. If gold/silver ratio gains momentum and leaves this range, it will have a significant impact on silver.
Silver has just made another attempt to settle below the 20 EMA at $24.00 but failed to develop sufficient downside momentum. If silver settles below this level, it will head towards the next support at $23.50.
In recent trading sessions, silver received strong support below the 20 EMA, and each attempt to move lower was quickly bought by traders who were willing to bet on a quick rebound.
If silver gets below the support at $23.50, it will gain additional downside momentum and head towards the next support level at $23.30.
On the upside, silver needs to settle above the 50 EMA at $24.15 to have a chance to develop upside momentum. The next resistance for silver is located at $24.60. If silver settles above this level, it will move towards the next resistance at $25.00.
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