Silver Price Daily Forecast – Silver Stays Above The Support At $24.00Silver has managed to settle above the support level at $24.00 and maintains chances to continue the upside move.
Silver Video 04.08.20.
Silver Price Volatility Decreases
Silver trades above $24.00 as the U.S. dollar tries to continue its rebound against a broad basket of currencies while gold stays just below the $2000 level.
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The U.S. Dollar Index has managed to settle above the support at 93.5 and is currently heading towards the nearest resistance at 94. A move above the 94 level will likely lead to increased upside momentum and push U.S. Dollar Index towards the 20 EMA which is located at 94.75.
Such a move may put material pressure on silver and gold since stronger dollar makes precious metals more expensive for buyers who have other currencies.
In addition, this move may trigger increased speculative activity from those traders who are willing to bet on silver price downside.
Meanwhile, spot gold continues to show its strength and stays just below the key $2000 level. Gold has moved from $1800 to $1980 without any pullback which highlights significant demand from traders and investors. In case gold is able to get above the $2000 level, silver will likely experience significant upside momentum.
Volatility in gold/silver ratio continues to decrease as it tries to settle near the 81 level. Gold/silver ratio is at levels that were last seen in September 2019 so it needs some time to go through a period of consolidation.
If gold/silver ratio does not rebound in the near term, it will have good chances to continue the downside move which would be bullish for silver.
Silver continues to trade in a range between the support at $24.00 and resistance at $24.95.
RSI has recently declined but stays in the overbought territory so silver may need additional consolidation before it is ready to continue the upside move in case sufficient upside catalysts emerge.
In case silver gains more upside momentum and settles above the resistance at $24.95, it will head towards the next resistance level at $26.20.
On the support side, silver’s move below $24.00 may trigger a minor sell-off as it will indicate that silver has started to lose near-term momentum.
If this happens, silver will likely decline towards the next support level at $23.25.
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