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Silver Price Daily Forecast – Stronger Dollar Puts Pressure On Silver

By:
Vladimir Zernov
Published: Jan 6, 2021, 15:03 UTC

Silver failed to settle above the resistance at $27.75 and gained downside momentum.

Silver

In this article:

Silver Video 06.01.21.

Silver Is Under Pressure

Silver made an attempt to settle above the resistance at $27.75 but lost momentum and declined towards $27.00 as the U.S. dollar suddenly gained upside momentum against a broad basket of currencies.

The U.S. Dollar Index was under pressure and reached a low at 89.21 but then reversed course and climbed back above 89.50. Traders were concerned about Democrats’ lead in Georgia Senate runoff elections which could lead to additional stimulus programs but the U.S. dollar managed to find some support. If the U.S. Dollar Index moves towards the next resistance level at 89.75, it will put more pressure on silver and gold price today.

The recent strength of the U.S. dollar has also put some pressure on gold which declined below the $1950 level. The nearest support level for gold is located at $1930. Gold has already tested this level but failed to develop sufficient downside momentum. If gold declines below $1930, it will head towards the $1900 level which will be bearish for silver and other precious metals.

Meanwhile, gold/silver ratio is mostly unchanged near the 71 level. It has recently made an attempt to get to the test of the nearest support level at 69.75 but lost momentum and rebounded back to 71. If gold/silver ratio gets to the test of the support at 69.75, silver will get a boost.

Technical Analysis

silver january 6 2021

Silver tested the resistance at $27.75 but failed to settle above this level and declined below $27.50. The nearest support level for silver is located at $27.00, and silver is currently testing this level.

In case silver gets below this level, it will head towards the next support level at $26.70. A move below this level will push silver towards the support at $26.30.

On the upside, silver needs to get back above the resistance at $27.50 to have a chance to gain upside momentum. RSI returned to the moderate territory so there is plenty of room to gain additional momentum.

The next resistance level is located at $27.75. If silver manages to settle above this level, it will move towards the resistance at $28.30.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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