Silver Price Daily Forecast – Silver Remains Stuck Between 50 EMA And 20 EMASilver tried to settle below the 50 EMA at $25.20 but this attempt was not successful.
Silver Video 14.01.21.
Stronger Dollar Did Not Put Much Pressure On Silver
Silver made an attempt to settle below the 50 EMA at $25.20 but did not manage to gain sufficient downside momentum while the U.S. dollar gained ground against a broad basket of currencies.
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The U.S. Dollar Index is currently testing the nearest resistance level at 90.50. If this test is successful, the U.S. Dollar Index will head towards the next resistance level at 90.70 which will be bearish for silver and and gold price today.
Meanwhile, gold is trying to get back above the $1850 level after an unsuccessful attempt to breach the support at $1830. If gold manages to settle above $1850, it will move towards the next resistance level at $1865 which will be bullish for silver.
Gold/silver ratio continues its attempts to settle below the nearest support level at the 20 EMA at 72.75. If gold/silver ratio manages to settle below this level, it will move towards the 72 level which will provide support to silver.
Traders will also focus on Biden’s stimulus plan which is set to be unveiled today. Additional stimulus is bullish for markets but it remains to be seen whether safe-haven assets like silver and gold will benefit from another round of money-printing or investors will continue to choose riskier assets which were in demand in recent trading sessions.
Silver failed to develop additional downside momentum below the support level at the 50 EMA at $25.20 and remains stuck in the range between the 50 EMA and the 20 EMA at $25.75.
In this light, the technical situation has not changed materially compared to the previous trading session. If silver settles below the 50 EMA, it will gain downside momentum and quickly get to the test of the next support level at $25.00. A successful test of this level will open the way to the test of the support at $24.70.
On the upside, silver needs to get above the resistance at $25.55 in order to gain additional upside momentum and get to the test of the next resistance at the 20 EMA at $25.75. If silver manages to settle above the 20 EMA, it will head towards the resistance at $26.30.
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