Silver Price Daily Forecast – Strong U.S. Dollar Continues To Put Pressure On SilverSilver is losing ground in volatile trading.
Silver Video 22.09.20.
Silver Suffers From Virus Worries
Silver remains under pressure as the U.S. dollar is gaining ground against a broad basket of currencies. However, silver failed to settle below the recent lows at $23.70 and tried to develop some upside momentum.
The U.S. Dollar Index has managed to settle above 93.50 but failed to get above the nearest resistance level at the 50 EMA at 93.80. If the U.S. Dollar Index manages to move above the 50 EMA, silver will find itself under serious pressure.
Gold is currently attempting to get back above its 50 EMA at $1915. Gold has already made two attempts to settle below the $1900 level but failed to gain more downside momentum. If gold settles above the 50 EMA, silver will likely get more support.
Gold/silver ratio has settled above the 50 EMA at 77.60. If gold/silver ratio gains more upside momentum, silver will get to the test of the recent lows.
Fears about a potential second wave of lockdowns in Europe did more damage to silver than gold because of silver’s dependence on industrial demand. If global markets calm down, silver will have a good chance to rebound.
Silver is currently trading in a wide range between the support at the recent lows at $23.70 and the resistance at the 50 EMA at $25.15.
If silver manages to get back above the 50 EMA at $25.15, it will gain upside momentum and head towards the next resistance level at $25.85.
A move above the resistance at $25.85 will open the way to the test of the next resistance at the 20 EMA at $26.45.
On the support side, silver must get below the support at $23.70 to continue its downside move. Despite the strength of the recent downside move, RSI is still in the moderate territory so there is plenty of room to gain additional downside momentum.
If this happens, silver will head towards the next support level at $23.30. If silver manages to settle below $23.30, it will move towards the following support level at $22.90.
In the near term, silver price dynamics will heavily depend on the direction of the U.S. dollar.
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