Silver Price Daily Forecast – Silver Remains Stuck Under The 50 EMASilver made an attempt to test the 50 EMA at $24.40 but failed to gain sufficient upside momentum.
Silver Video 12.11.20.
Silver Is Flat As Traders Wait For New Catalysts
Silver is currently trading in a tight range between the support at $23.90 and the resistance at the 50 EMA at $24.40 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle below the 93 level but failed to gain downside momentum. At the same time, the U.S. Dollar Index did not manage to get above the nearest resistance level at the 20 EMA at 93.15.
If the U.S. Dollar Index settles above this level, it will gain upside momentum and move towards the 50 EMA at 93.40 which will be bearish for silver. Strong U.S. dollar is a bearish catalyst for silver and other precious metals as it makes them more expensive for buyers who have other currencies.
Meanwhile, gold found material support near $1860 and is testing the nearest resistance level at $1880. A move above this level will open the way to the test of the resistance at the 50 EMA at $1900 which will be bullish for silver and other precious metals.
Gold/silver ratio has lost momentum in recent trading sessions and is moving between the support which has emerged at 76.85 and the major resistance at the 50 EMA at 78.20. If gold/silver ratio gets above the 50 EMA, it will continue its rebound which will be bearish for silver.
The technical picture for silver has not changed for several days as it remains stuck in the range between the nearest support level at $23.90 and the nearest resistance level at the 50 EMA at $24.40.
Most likely, silver will gain momentum when it manages to get out of this range. RSI is in the moderate territory, and there is plenty of room to gain momentum when new catalysts emerge.
On the upside, a move above the 50 EMA will push silver towards the next significant resistance level at $25.00. In case silver gets above this level, it will head towards the resistance at $25.55.
On the support side, a move below $23.90 will open the way to the test of the next support level at $23.30. If silver declines below this level, it will head towards the support at $22.90.
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