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Vladimir Zernov
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Silver

Silver Declines As Dollar Gains Ground At The Beginning Of The Week

Silver remains stuck in a tight range between the support at $25.80 and the resistance at $26.30 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 92.40 but lost momentum and pulled back towards 92.30. In case the U.S. Dollar Index manages to settle above the resistance at 92.40, it will move towards the next resistance level at 92.80 which will be bearish for silver and gold price today.

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Meanwhile, gold managed to get below the support at the $1800 level. If gold settles below $1800, it will head towards the support at $1775 which will be bearish for silver and other precious metals.

Gold/silver ratio is currently testing the 69 level. In case gold/silver ratio declines below this level, it will head towards the support at 68.70 which will be bullish for silver.

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Technical Analysis

Silver has recently made another attempt to settle above the resistance at the 20 EMA at $26.30 and moved closer to the nearest support level at $25.80. If silver declines below this key support level, it will head towards the support at $25.50. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum.

If silver manages to settle below the support at $25.50, it will head towards the next support at $25.30. A successful test of this level will open the way to the test of the next support level which is located at $25.00.

On the upside, silver needs to settle above the resistance at the 20 EMA at $26.30 to have a chance to gain upside momentum in the near term. If silver manages to settle above the resistance at the 20 EMA, it will move towards the next resistance level at the 50 EMA at $26.60. A move above the 50 EMA will push silver towards the resistance at $27.00.

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

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