Vladimir Zernov
Add to Bookmarks

Silver Video 26.06.20.


Silver Remains Range-Bound

Silver continues to trade in the range between $17.50 and $18.00 as gold loses some ground and the U.S. dollar is flat against a broad basket of currencies.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index  continues its attempts to get above the resistance at 97.5 but stays mostly unchanged. The U.S. dollar has shown strength during the recent trading sessions which is bearish for silver and other precious metals as it makes them more expensive for buyers who have other currencies.

Gold is pulling back from recent highs as global markets stay undecided on whether the potential second wave of coronavirus is a real threat. The $1750 level attracted a lot of interest so the choppy trading is not surprising.

Meanwhile, gold/silver ratio continues to decline and has settled below the 20 EMA at 99.25. Recently, gold/silver ratio managed to get above 100 but immediately pulled back which is a welcome sign for silver bulls.

Before the crisis, gold/silver ratio was below 90, and a return to these levels will provide big support for silver even in case gold shows some softness.

Technical Analysis

At this point, silver was not able to develop sufficient upside momentum and stays in the range between the support at the 20 EMA at $17.50 and the resistance near $18.00.

The support at $17.50 has already been tested many times so silver may develop strong downside momentum in case it manages to settle below this level.

In this scenario, silver will decline to the next support at $17.00 which is also projected to be a strong level. The support at $17.00 has also been tested a number of times, and the 50 EMA has risen to this level. A move below the 50 EMA will mark the end of the current upside trend.

On the upside, silver will first have to deal with the resistance at $18.00 in order to get a chance to test highs below $18.50 that were reached in early June . Currently, silver is forming a very solid base so if it is able to get above $18.00, it will have good chances to get past $18.50 and test the major resistance at $19.00.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker