Silver Price Daily Forecast – Silver Stays Above The 20 EMASilver trades between $17.50 and $18.00 ahead of the weekend.
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.
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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.
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.
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