Silver Price Daily Forecast – Silver Moves Lower On Stronger U.S. Dollar

Silver Video 27.01.21.

Silver Is Under Pressure Ahead Of Fed Interest Rate Decision

Silver is currently trying to settle below the support at $25.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained upside momentum and is trying to settle above the resistance level at 90.50. The next resistance for the U.S. Dollar Index is located at 90.70. A move above this level will open the way to the test of the 50 EMA at 90.80 which will be bearish for silver and gold price today.

Interestingly, the U.S dollar is moving higher ahead of Fed Interest Rate Decision. While the Fed is expected to deliver a dovish message which should be bearish for the American currency, increased demand for safe-haven assets is pushing dollar higher.

Meanwhile, gold continues to trade near the $1850 level. The nearest support level for gold is located at $1830. If gold manages to settle below $1830, it will move towards the $1800 level which will be bearish for gold and other precious metals.

Gold/silver ratio managed to settle above the 20 EMA at 72.85 and is moving towards the next resistance level at the 50 EMA at 73.90. If gold/silver ratio settles above the 50 EMA, it will gain additional upside momentum which will be bearish for silver.

Technical Analysis

Silver managed to settle below the 50 EMA at $25.25 and is trying to get below the next support level at $25.00. If this attempt is successful, silver will head towards the next support level which is located at $24.70.

A successful test of the support at $24.70 will push silver towards the support at $24.50. In case silver declines below this level, it will move towards the support level at $24.25.

On the upside, the previous support level at the 50 EMA at $25.25 will likely serve as the first resistance level for silver. If silver gets above this level, it will move towards the next resistance at the 20 EMA at $25.50. A move above the 20 EMA will push silver towards the resistance at $25.85.

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