Silver Price Daily Forecast – Silver Tries To Get Above $19.50Silver attempts to settle above the nearest resistance level.
Silver Video 16.07.20.
First Test Of Resistance At $19.50 Yields No Results
Silver continues to trade above the $19.00 level but its first attempt to get above the nearest resistance at $19.50 was not successful.
Meanwhile, the U.S. dollar is flat against a broad basket of currencies while gold lacks momentum but remains above the psychologically important $1800 level.
The U.S. Dollar Index has settled near the 96 level after an attempt to rebound. The U.S. has recently released important economic reports but they did not have much impact neither on silver nor on American currency.
Initial Jobless Claims were 1.3 million while Continuing Jobless Claims declined to 17.3 million. Retail Sales report showed solid growth of 7.5% on a month-over-month basis but it remains to be seen whether the current momentum will continue when generous unemployment benefits come to an end.
Gold is under minor pressure today as it continues to consolidate above the $1800 level. The current upside trend stays intact, and gold has good chances to get to new highs, providing support to the whole precious metal segment including silver.
Gold/silver ratio is rebounding after declining to the 93 level but stays in the downside trend. I maintain my opinion that gold/silver ratio has decent chances to return to pre-pandemic levels below 90. Such a move would provide material support for silver.
Silver made an attempt to get above the resistance level at $19.50 but failed to develop additional momentum. However, silver maintains solid chances for a successful test of this level.
In this case, silver will gain more upside momentum and head towards the next resistance level at $20.00. A move above $20.00 will provide silver with a chance to establish a significant medium-term upside trend.
On the support side, the nearest material support for silver is located at the previous resistance level at $19.00. Traders will be watching this level closely since silver quickly moved lower after failure to settle above $19.00 at the beginning of this year.
In this light, traders will be afraid of a false breakout. A move below $19.00 may lead to a sell-off which will take silver closer to the next support level near the 20 EMA below $18.50.
For a look at all of today’s economic events, check out our economic calendar.