Silver Price Daily Forecast – Silver Rallies As Dollar Declines After Non Farm Payrolls Report
Silver Video 04.06.21.
Silver Gets Back To $27.75
Silver is currently trying to settle back above the resistance at $27.75 while the U.S. dollar is under strong pressure against a broad basket of currencies.
The U.S. Dollar Index gained downside momentum after U.S. released Non Farm Payrolls report. The report indicated that the U.S. economy added 559,000 jobs in May compared to analyst consensus of 650,000. Importantly, the recent ADP Employment Change report showed that private businesses hired 978,000 jobs in May so market expectations from Non Farm Payrolls report were high.
The U.S. Dollar Index has already managed to decline below the support at the 20 EMA at 90.20 and is moving towards the support at the 90 level. If the U.S. Dollar Index declines below this level, it will head towards the next support at 89.75 which will be bullish for silver and gold price today.
Gold also gained upside momentum and is currently trying to get to the test of the $1900 level. If gold manages to settle above this level, it will move towards the next resistance at $1930 which will be bullish for silver and other precious metals.
Gold/silver ratio declined towards the 68 level. The nearest support level for gold/silver ratio is located at the 50 EMA at 67.90. If gold/silver ratio settles below this level, it will gain additional downside momentum which will be bullish for silver.
Silver managed to settle back above the 20 EMA at $27.55 and is trying to settle above the next resistance at $27.75. If this attempt is successful, silver will find itself back in the trading range between $27.75 and the resistance level which is located at $28.30.
RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge. If silver settles above $28.30, it will move towards the next resistance at $28.90.
On the support side, the nearest support level for silver is located at the 20 EMA at $27.55. A move below the 20 EMA will push silver towards the support at the 50 EMA at $27.00. In case silver gets below this level, it will move towards the next support at $26.65.
For a look at all of today’s economic events, check out our economic calendar.