Silver Price Daily Forecast – Silver Tests Resistance At $27.50 After Shocking U.S. Jobs DataSilver gained upside momentum as U.S. dollar moved lower.
Silver Video 07.05.21.
Silver Moves Higher As Dollar Dives After U.S. Jobs Reports
Silver has recently made an attempt to settle above the resistance at $27.50 after U.S. provided disappointing Non Farm Payrolls and Unemployment Rate reports which put pressure on the U.S. dollar. Non Farm Payrolls declined from 770,000 (revised from 916,000) to 266,000 compared to analyst consensus of 978,000 while Unemployment Rate increased from 6% to 6.1%.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has managed to get below the support at 90.70 and made an attempt to move below the next support at 90.50. In case the U.S. Dollar Index declines below 90.50, it will head towards 90.30 which will be bullish for silver and gold price today.
Gold gained upside momentum and settled above the $1820 level. The next resistance for gold is located at the $1850 level. If gold gets to the test of this level, silver and other precious metals will get more support.
Gold/silver ratio failed to settle below the support at 66.50 and moved back above the 67 level. The next resistance level for gold/silver ratio is located at 67.50. If gold/silver ratio moves towards this level, silver may find itself under pressure.
Silver managed to settle above the resistance at $27.00 and made an attempt to settle above the next resistance level at $27.50. Dollar’s weakness after disappointing Non Farm Payrolls report served as the main catalyst for the move, and the continuation of dollar’s downside trend may help silver to get above the resistance at $27.50. In this case, silver will move towards the next resistance level at $27.75.
A move above the resistance at $27.75 will push silver towards the resistance at $28.30. In case silver settles above this level, it will head towards the resistance at $28.90.
On the support side, the previous resistance at $27.00 will serve as the first support level for silver. If silver settles below this level, it will move towards the support at $26.65. A move below $26.65 will open the way to the test of the support which is located near the 20 EMA at $26.30. If silver settles below the 20 EMA, it will move towards the 50 EMA at $26.00.
For a look at all of today’s economic events, check out our economic calendar.