Silver Price Daily Forecast – Silver Stays Below $27.00

Silver Video 04.09.20.

Silver Trades Near The Key 20 EMA Level

Silver is trying to settle below the 20 EMA at $26.70 as the U.S. Dollar Index is making another attempt to get above the 93 level.

The U.S. Dollar Index was boosted by strong U.S. employment reports. Non Farm Payrolls report indicated that 1.37 million jobs were created in August while Unemployment Rate declined from 10.2% in July to 8.4% in August.

In case the U.S. Dollar Index manages to settle above the 93 level, it will gain more upside momentum which would be bearish for silver.

Gold continues to trade below the 20 EMA at $1945 and has decent chances to develop more downside momentum. The nearest material support for gold is located at the 50 EMA at $1900. If gold moves towards this level, silver will find itself under increased pressure.

Meanwhile, gold/silver ratio is located close to the 72 level after an unsuccessful attempt to get above the 20 EMA at 73.25. A move above the 20 EMA would be bearish for silver.

Currently, silver is at risk of developing downside momentum as the U.S. Dollar Index tries to settle above the key resistance level while gold continues to trade below the 20 EMA.

Technical Analysis

 

Silver continues to trade near the key 20 EMA level at $26.70. In case silver manages to settle below this level, it will gain downside momentum and head towards the next support level at $26.20.

Silver’s RSI is in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge. A move below the support at $26.20 will allow silver to get closer to the next support level at $24.95.

On the upside, silver needs to stay above the 20 EMA to have a chance to test the nearest resistance level at $27.75. If silver moves above $27.75, it will head towards the next resistance at $28.50.

From a big picture point of view, silver’s upside trend is still intact, but its near-term upside momentum is under question and depends on its ability to stay above the 20 EMA at $26.70. Most likely, dynamics of the U.S. dollar will play a key role for silver in the upcoming trading sessions.

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