Silver Price Daily Forecast – Silver Retreats On Stronger Dollar

Silver Video 22.12.20.

Silver Pulls Back After Yesterday’s Volatile Trading

Silver is currently trying to settle below the support at $25.85 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to get to the test of the nearest support level at 90 but failed to develop sufficient downside momentum and rebounded closer to 90.30. If the U.S. Dollar Index gains upside momentum and gets to the test of the resistance at 90.50, it may have a negative impact on gold and silver price today.

Gold did not manage to settle above $1900 and tested the nearest support level at the 50 EMA at $1865 but failed to settle below this level. If gold gets below the 50 EMA, it will quickly get to the test of the next support at the 20 EMA at $1855 which will be bearish for silver and other precious metals.

Meanwhile, gold/silver ratio is trying to stabilize above the 72 level after yesterday’s volatile trading session. If gold/silver ratio moves towards the nearest significant resistance level at 73.50, silver will find itself under more pressure.

Technical Analysis

Silver is testing the nearest support level at $25.85. If this test is successful, silver will head towards the next support level at $25.55. RSI is in the moderate territory so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If silver settles below $25.55, it will move towards the next support at $25.30. A move below this level will push silver towards the support at the recent lows at $25.00. This support level has recently proved its strength so silver will likely need additional catalysts to settle below $25.00.

On the upside, silver needs to settle above $25.85 to develop upside momentum. The next resistance level is located at $26.30. Today, silver made an attempt to settle above this level but this attempt yielded no results. If silver gets above $26.30, it will head towards the next resistance level at $27.00.

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