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Silver Price Daily Forecast – Silver Remains Range-Bound

By:
Vladimir Zernov
Updated: Oct 13, 2020, 08:21 UTC

Silver failed to settle below the 20 EMA and continues to trade near this key level.

Silver

Silver Video 18.09.20.

Silver Continues To Trade Close To The Key 20 EMA Level

Silver is trading near the 20 EMA at $26.85 as the U.S. dollar is flat against a broad basket of currencies while gold/silver ratio stays within the range between 71 and 73.

The U.S. Dollar Index found support at 92.80 but remains below the 20 EMA at 93.05 as traders worry that the rebound of the American economy may be slowing down.

If the U.S. Dollar Index manages to settle below the support at 92.80, it will gain more downside momentum and move towards the next support at 92.50, which will be bullish for silver. Weaker dollar is a positive catalyst for silver as it makes it cheaper for buyers who have other currencies.

Gold is also trading near its 20 EMA at $1945. In recent trading sessions, gold failed to gain any momentum and remained close to the key 20 EMA level.

Yesterday, gold/silver ratio made an attempt to settle above the high end of the current range at 73. This attempt was not successful, and gold/silver ratio returned back to the previous range.

If gold/silver ratio manages to develop upside momentum, silver will find itself under pressure. However, the resistance at the 73 level is strong so gold/silver ratio has good chances to stay within the current range.

Technical Analysis

silver september 18 2020

Silver remains near the 20 EMA at $26.85 which serves as the first support level. In September, silver made two serious attempts to settle below the 20 EMA but they were followed by quick rebounds.

If silver manages to settle below the 20 EMA, it will head towards the next support level at $25.85, although it may also get some support near the recent lows at $26.30.

A move below the support at $25.85 will confirm that silver is ready for a downside trend. In this scenario, silver will move towards the 50 EMA at $25.20.

On the upside, silver needs to get above the major resistance level at $27.75 to have a chance to gain more upside momentum.

If silver settles above the resistance at $27.75, it may quickly get to the test of the next resistance level at $28.50.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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