Silver Price Daily Forecast – Silver Rebounds After Yesterday’s Sell-Off

Silver Video 22.04.20.

Upside In Equity Markets And Weaker U.S. Dollar Highlight The Return Of Risk Appetite

Silver returned back to the $15.00 level as the situation on the oil price front showed signs of stabilization and equity markets started to rebound after yesterday’s sell-off.

As I noted yesterday, the support level at $14.60 looked strong, and silver failed to get below it during the first attempt.

At this point, the risk appetite returned to the global markets, and the U.S. dollar is losing ground against a broad basket of currencies – the U.S. Dollar Index has declined towards the 100 level. Weaker U.S. dollar is bullish for silver as it makes it less expensive for buyers who have other currencies.

Gold is also enjoying upside and has returned back above the $1700 level. I maintain my view that gold price upside is very important for the continuation of silver price upside since it attracts new funds into the whole precious metal segment.

Today, there are no big news on the U.S. economic front, so global markets have a good chance to spend the whole trading day in the risk-on mode. Tomorrow, the markets will have to deal with the U.S. Initial Jobless Claims release, which is expected to show that 4.15 million of Americans filed for unemployment benefits.

Technical Analysis

Currently, silver is near the first resistance level at the 20 EMA at $15.00. Previously, this level has proved to be a material level for silver, so it won’t be that easy to go through it during the first attempt.

In case silver manages to settle above the 20 EMA, it will find itself in the range between $15.00 and the 50 EMA at $15.55. If silver gets above the 50 EMA, I’d expect some minor resistance near recent highs at $15.80.

The breach of the $15.80 level will open the way to pre-crisis levels at $16.50. In this scenario, I’d expect that silver will get material short-term upside momentum.

On the support side, the recent lows near $14.60 proved to be a major support level for silver. In case silver settles below this level, the sell-off will likely intensify, and silver will test the next support area between $13.80 and $14.00.