Silver Price Daily Forecast – Silver Tries To Get Above $18.00

Silver Video 10.06.20.

Silver Returns To The Upside Mode

Silver managed to stay above $17.50 and is developing upside momentum. The key event of the day is the Fed Interest Rate decision, and the U.S. dollar is losing ground ahead of the release of Fed’s new economic outllook.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is currently trying to settle below the 96 level. A weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.

Gold continues to enjoy upside, and it looks like gold managed to replace the U.S. dollar in the status of the safe haven asset of first choice. If this trend continues, the whole precious metal segment will enjoy more upside.

Meanwhile, gold/silver ratio is back below 97 as silver managed to resume its upside move. The nearest support for gold/silver ratio is located at 95. In case gold/silver ratio moves below this level, silver’s upside momentum will likely increase.

At this point, the market setup is favorable for silver. Gold managed to stay above $1700 per ounce which is good for the whole precious metal segment, the U.S. dollar remains under pressure, and gold/silver ratio failed to develop upside momentum.

Technical Analysis

Silver has confirmed that it has significant buyer interest as it managed to stay above the support level at $17.50. The RSI has fallen from the overbought levels during the recent pullback, and silver has good chances to develop material upside momentum in case additional positive catalysts emerge.

The nearest resistance level for silver is located at the recent highs below $18.50. In case silver manages to settle above this level, it will gain additional upside momentum and head towards the test of the major resistance at $19.00.

On the support side, the first support for silver is at $17.50. This support level has already been tested many times. Silver even temporarily breached this level to the downside but buyers quickly pushed it back above the support at $17.50.

This support is important for silver so a move below it will likely lead to additional downside momentum and push silver closer to the next significant support level at $17.00.

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