Silver Price Daily Forecast – Silver Tries To Settle Above The 50 EMA

Silver Video 15.12.20.

Weaker U.S. Dollar Provides Support To Silver

Silver is currently trying to settle above the nearest resistance level at the 50 EMA at $24.15 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is trying to get to the test of the yearly lows at 90.50. In case the U.S. Dollar Index manages to settle below this level, it will head towards the 90 level which may provide support for silver and gold price today. Weaker dollar is typically bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Meanwhile, gold attempts to settle above the resistance at the 20 EMA at $1845. A move above the 20 EMA will push gold towards the next resistance level at the 50 EMA at $1865 which will be bullish for silver.

Gold/silver ratio is currently located close to the major support level at 75.50. This is a very interesting moment for silver traders as gold/silver ratio will likely develop strong downside momentum if it manages to settle below 75.50. In this scenario, gold/silver ratio will head towards 73.50 which will provide material support to silver.

Technical Analysis

Silver gained upside momentum and is trying to settle above the major resistance level at the 50 EMA at $24.15. RSI is in the moderate territory so there is plenty of room to gain upside momentum.

The next resistance level for silver is located at $24.60. In case silver settles above $24.60, it will head towards the resistance at $25.00.

A successful test of the resistance at $25.00 will push silver towards the next resistance at $25.30. If silver gets above $25.30, it will move towards the resistance at October highs at $25.55.

On the support side, the previous resistance at the 50 EMA will likely serve as the first support level for silver. If silver declines below the 50 EMA, it will move towards the major support area between $23.50 and $24.00. Silver will need to settle below the support at $23.50 in order to develop downside momentum.

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