Silver Price Daily Forecast – Support At $23.20 Stays Strong

Silver Remains Under Pressure As Gold/Silver Ratio Tests New Highs

Silver has recently made an attempt to settle below the support at $23.20 but lost momentum and rebounded towards the resistance at $23.50 while the U.S. dollar moved towards yearly highs against a broad basket of currencies.

The U.S. Dollar Index is currently testing the resistance level at 93.40. In case the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance level at 93.65 which will be bearish for silver and gold price today.

Gold failed to settle below the support level at $1775 and moved closer to the 20 EMA at $1785. The nearest resistance level for gold is located at the 50 EMA near the $1800 level. If gold manages to settle above the 50 EMA, it will gain additional upside momentum and head towards the next significant resistance level at $1830 which will be bullish for silver and other precious metals.

Meanwhile, gold/silver ratio continues to move higher. Gold/silver ratio managed to settle above the 76 level and has recently made an attempt to get to the test of the 77 level. RSI for gold/silver ratio is in the overbought territory and the risks of a pullback are increasing, but the current upside momentum stays strong. If gold/silver ratio gets above the 77 level, silver will find itself under more pressure.

Technical Analysis

Silver continues its attempts to settle below the significant support level at $23.20. In case silver manages to settle below this level, it will gain additional downside momentum and get to the test of the next support level which is located at $22.90. A move below $22.90 will push silver towards the support at $22.60.

On the upside, the nearest resistance level for silver is located at $23.50. In case silver gets back above this level, it will head towards the resistance at $23.80.

A successful test of the resistance at $23.80 will open the way to the test of the next resistance at $24.00. If silver settles above $24.00, it will head towards the resistance level at $24.20.

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