Silver Price Daily Forecast – Silver Rallies On Weaker U.S. Dollar

Silver Video 05.11.20.

Silver Moves Towards $25.00 Ahead Of U.S. Fed Interest Rate Decision

Silver managed to settle above the 50 EMA at $24.40 as the U.S. dollar remained under significant pressure against a broad basket of currencies.

The U.S. Dollar Index has managed to get above the support at the 93 level and even tested the support at 92.50 amid widespread market optimism. If the U.S. Dollar Index settles below the support at 92.50, it will head towards the next support level at 92.10 which will be bullish for silver.

Meanwhile, gold settled above its 50 EMA at $1905 and is testing the nearest resistance level at $1930. If gold manages to get above this level, it will gain additional upside momentum which will be bullish for silver and other precious metals.

Gold/silver ratio moved back below the 50 EMA at 78.50 and is trying to develop additional downside momentum. A move towards the nearest support at 76.50 will provide additional support to silver.

Today, the U.S. Fed will announce its Interest Rate Decision and provide commentary on its plans to support the economy. If the Fed is dovish enough, the U.S. dollar will find itself under more pressure, while gold and silver will move towards higher levels.

Technical Analysis

Silver managed to settle above the 50 EMA at $24.40 and moved above the resistance at $24.60 as weak U.S. dollar continued to provide support to precious metals.

The nearest resistance level for silver is located at $25.00. If silver settles above this level, it will head towards the next resistance at $25.30. A move above the resistance at $25.30 will push silver towards October highs at $25.55.

If silver manages to get above October highs, it will be able to gain additional upside momentum and continue its rebound from the lows reached during the sell-off in September.

On the support side, silver will likely find some support at the previous resistance at $24.60 although the first major support level is located at the 50 EMA at $24.40.

If silver gets below the 50 EMA, it will move towards the next support level at $23.90. A move below this level will open the way to the test of the material support level at $23.30.

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