Silver Price Daily Forecast – Silver Takes A Pause After Previous Upside Move

Silver Video 13.04.20.

Silver Stays Below The Major Resistance Level At 50 EMA

Silver pulls back following an attempt to break through the major resistance level at the 50 EMA at $15.60.

There’s no material economic data scheduled to be released today so silver prices will find themselves in the hands of pure market sentiment.

The U.S. dollar, which serves as the safe haven asset of last resort during the current crisis, is flat against a broad basket of currencies. The U.S. Dollar Index stays below the 100 level, and the volatility is decreasing.

However, it remains to be seen whether the markets will stay calm as the U.S. enters the first week of the earnings season and economic data like U.S. Retail Sales and U.S. Initial Jobless Claims is set to be published later this week.

The economic data from the U.S. will likely set the tone for the world markets and impact investor mood in other asset classes.

As silver is getting closer to pre-crisis levels at $16.50, it needs stronger catalysts to maintain the upside trend. The massive stimulus measures that were announced all over the world should help the whole precious metal sector, but gold is the primary beneficiary of such moves.

Silver’s dependence on industrial demand remains its weak spot since industrial production will decline in 2020 due to coronavirus crisis. However, silver may gain ground on increased investment demand.

Technical Analysis

Silver continues to trade below the 20 EMA at $14.80 and 50 EMA at $15.60. The 50 EMA serves as a major resistance for silver which has already made several unsuccessful attempts to test this level.

In case silver manages to settle above the 50 EMA, it will have a good chance to complete the current rebound and get to pre-crisis levels at $16.50. Some U.S. dollar weakness would be of great help, but general optimism in the precious metals segment should be sufficient enough for such move.

The 20 EMA at $14.80 is the first material support level. In addition, I’d expect increased buyer interest in the $14.30 – $14.60 area. In case silver settles below this level, it will likely retest the next support area at $13.80 – $14.00.