Silver Price Daily Forecast – Silver Swings Back And Forth In A Wide Range

Silver Video 04.11.20.

Stronger U.S. Dollar Continues To Put Pressure On Silver

Silver has managed to get back to the $24 level but remains under some pressure as the U.S. dollar is gaining ground against a broad basket of currencies amid election uncertainty.

The U.S. Dollar Index had a very volatile trading session, swinging between the support at 93.30 and the resistance at 94.30. Currently, the U.S. Dollar Index is trying to get back above the 50 EMA at 93.60. If this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 94 which will be bearish for silver. A stronger U.S. dollar is a negative catalyst for silver as it makes it more expensive for buyers who have other currencies.

Meanwhile, gold is mostly flat and continues to trade near the 50 EMA at $1905. If gold manages to settle above the 50 EMA, it will have a good chance to develop upside momentum which will be bullish for silver and other precious metals.

Gold/silver ratio has managed to get above its 50 EMA at 78.50 and made an attempt to settle above the 80 level. This attempt was stopped at 80.80. If gold/silver ratio gets to another test of the resistance which has emerged at 80.80, silver will find itself under increased pressure.

Technical Analysis

Silver received strong support at $23.30 and rebounded closer to the $24 level. At this point, silver needs to stay above the support level at $23.90 to have a chance to gain additional upside momentum.

The nearest significant resistance level for silver is located at the 50 EMA at $24.40. If silver settles above the 50 EMA, it will head towards the next resistance level at $24.60. The resistance area at $24.40 – $24.60 has already been tested during today’s trading session, and silver failed to gain sufficient upside momentum. A move above the resistance at $24.60 will open the way to the test of the next resistance at the $25 level.

On the support side, a move below the support at $23.90 will push silver towards the support at $23.30 which has also been tested during today’s trading session. If silver declines below this level, it will gain additional downside momentum and head towards the support at $22.90. If silver settles below $22.90, it will move towars the recent lows at $22.60.

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