Silver Price Daily Forecast – Silver Is Under Strong Pressure

Silver Video 08.01.21.

Silver Falls As Demand For Safe Haven Assets Declines

Silver tested the support at the 20 EMA at $26.05 but rebounded back above $26.50 while the U.S. dollar remained mostly flat against a broad basket of currencies.

The U.S. Dollar Index tested the resistance at the 20 EMA at 90.15 but failed to develop sufficient upside momentum and moved back below 90. The nearest support level for the U.S. Dollar Index is located at 89.75. In case the U.S. Dollar Index gets below this level, it will gain downside momentum which may provide some support to silver.

However, the dynamics of the American currency may have limited impact on silver and gold price today as the main reason for the recent sell-off was the upbeat global market sentiment which pushed traders to sell safe-haven assets.

Gold is also under pressure today. Gold managed to receive support at the 50 EMA at $1880 and is trying to settle above the nearest resistance level at the 20 EMA at $1890. If this attempt is successful, gold will head towards the $1900 level which will be bullish for silver.

Gold/silver ratio tried to get above the 71 level but did not develop upside momentum. If gold/silver ratio declines towards the recent lows near the 70 level, silver may get a boost.

Technical Analysis

Silver found itself under strong pressure today and tested the support at the 20 EMA at $26.05. Importantly, silver managed to get out of the recent upside channel which is a worrisome development for the bulls.

Silver has recently made an attempt to get back above the resistance at $26.70. The next resistance is located at the $27 level. A move above this level will open the way to the test of the resistance at $27.50.

On the support side, silver has managed to get below the support at $26.30 once again. The next support is located at the 20 EMA at $26.05. If silver gets below the 20 EMA, it will gain additional downside momentum and head towards the support at $25.85.

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