Silver Price Daily Forecast – Strong U.S. Dollar Puts Pressure On SilverSilver managed to settle below the support at $26.70 and continues to move lower.
Silver Video 08.09.20.
Silver May Gain Additional Downside Momentum
Silver declined below the nearest support level at the 20 EMA at $26.70 as the U.S. Dollar Index managed to settle above its 20 EMA at 93 and continued its upside move.
Finally, the American currency was able to continue its rebound against a broad basket of currencies, helped by the continued sell-off in S&P 500 which increased demand for safe-haven assets. This move put significant pressure on various dollar-denominated commodities, including silver.
The nearest resistance lvel for the U.S. Dollar Index is located near 93.50. In case the U.S. Dollar Index manages to settle above this level, it will head towards the 50 EMA at 94.10, which will be a bearish development for silver.
Stronger U.S. dollar has also put pressure on gold which has declined closer to the 50 EMA at $1905. In case gold moves below the 50 EMA, it will gain more downside momentum which will be bearish for the whole precious metal segment.
Gold/silver ratio continues to stay in the range between 71 and 73. Currently, it is trying to get to the test of the nearest resistance level at the 20 EMA at 73. In case gold/silver ratio manages to settle above the 20 EMA, it will gain more upside momentum and put additional pressure on silver.
Silver managed to get below the 20 EMA at $26.70 and is trying to develop more downside momentum. RSI is in the moderate territory so there is plenty of room to gain additional momentum.
The nearest support level for silver is located at $26.20. If silver manages to settle below this support level, it will head towards the next support at $24.95. There are no material levels between $24.95 and $26.20 so this move may be fast.
In case silver gets below the support at $24.95, it will move towards the next support at the 50 EMA at $24.50.
On the upside, the previous support at the 20 EMA at $26.70 will serve as the first resistance level for silver. If silver is able to settle above the 20 EMA, it will move towards the next support at $27.75.
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