Silver Price Daily Forecast – Silver Rallies As Dollar Dives After Fed’s Comments
Weak Dollar And Dovish Fed Provided Strong Support To Silver
Silver is currently trying to settle above the 20 EMA at $25.60 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to get to the test of the 50 EMA at 91.90. If the U.S. Dollar Index manages to settle below the 50 EMA, it will gain additional downside momentum which will be bullish for silver and gold price today. Weak dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.
Gold also enjoys support from weak dollar. Gold has recently managed to get above the 50 EMA at $1810 and is moving towards July highs near $1835. A move above the resistance at $1835 will open the way to the test of the $1850 level which will be bullish for silver and other precious metals.
Gold/silver ratio gained significant downside momentum and is moving towards the 71 level. If gold/silver ratio declines below this level, it will continue its downside move and head towards the 20 EMA at 70.60 which will be bullish for silver.
Silver has recently managed to get above the resistance at $25.50 and is testing the next resistance level which is located at the 20 EMA at $25.60. RSI remains in the moderate territory despite the strength of the current upside move, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If silver settles above the 20 EMA, it will get to the test of the next resistance level at $25.80. A move above this level will open the way to the test of the resistance at the 50 EMA at $26.10. In case silver gets above the 50 EMA, it will move towards the resistance at $26.30.
On the support side, a move below $25.50 will push silver towards the support at $25.30. If silver declines below this level, it will head towards the next support which is located at $25.00. A successful test of this level will open the way to the test of the support at $24.70.
For a look at all of today’s economic events, check out our economic calendar.