Silver Price Daily Forecast – Silver Tries To Break Through Major Resistance LevelMarket optimism boosts silver as it tries to settle above the 20 EMA.
Silver Video 06.04.20
Silver Gains Ground Despite Stronger U.S. Dollar As Optimism Is Widespread
Despite the continued strength of the U.S. dollar, silver is trying to get through the major resistance near the 20 EMA in the $14.50 – $14.70 area.
The U.S. Dollar Index continues its upside move and is currently trying to get through the 101 level, highlighting the strength of the American currency against a broad basket of currencies.
At the same time, the optimism in the markets helps silver to gain some ground. In addition, gold is enjoying upside as well, which is another bullish catalyst for silver.
The market is optimistic on hopes that the situation with coronavirus will stabilize soon, and that governments will start lifting virus containment measures which are hurting the economy.
Today, we see an interesting situation when stocks, precious metals and the U.S. dollar are enjoying upside at the same time. Such moves highlight the nervous nature of today’s markets.
Continued upside in equity markets will likely be bullish for silver which has received less investor support than safe haven assets like the U.S. dollar and gold. However, the situation remains very fluid, and coronavirus numbers could still get worse, especially in the U.S.
Gold could soon be trying to get through the key $1700 resistance level, a test which will also be important for silver. If gold gets to new highs, investors should expect a similar boost to most precious metals since new money will flow into the whole sector.
Silver is currently trying to settle above the key 20 EMA level but faces material resistance in the $14.50 – $14.70 area.
To continue the current upside trend, silver will have to get above $14.70 so that it can get more momentum from new entries as well as from unfortunate short-sellers who bet on silver downside near local highs.
If silver manages to settle above $14.70, the road to 50 EMA at $15.70 will be open. In case silver fails to get above the resistance level in the coming days, bear activity may intensify, and another test of the major support level in the $13.80 – $14.00 area is likely.
If such a test is successful, the upside trend will be over, and silver will quickly get to the next support level at $13.30.