Silver Price Daily Forecast – Support At $23.30 Stays Strong

Silver Video 01.10.20.

Silver Gains Ground On Weaker U.S. Dollar

Silver received support near $23.30 and is trying to settle above $23.50 as the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index made an attempt to settle below the 20 EMA at 93.65 but failed to gain sufficient downside momentum and rebounded closer to 93.75. If the U.S. Dollar Index manages to settle below 93.65, it will likely gain additional downside momentum which will be bullish for silver.

Gold is currently trying to settle above the $1900 level. The nearest resistance level for gold is located at the 50 EMA at $1905, followed by the next resistance at the 20 EMA at $1910.

If gold gets above the 50 EMA and the 20 EMA, it will have a good chance to gain significant upside momentum which will be bullish for silver.

Meanwhile, gold/silver ratio stays above the 80 level. In recent trading sessions, gold/silver ratio found support at the 50 EMA at 78.30 and tries to continue its previous upside move.

The nearest resistance level for gold/silver ratio is located at 82.45. In case gold/silver ratio gets above this level, it will move towards the recent highs at 85.15 which will be bearish for silver.

Technical Analysis

Silver failed to settle below the support at $23.30 and attempts to continue its rebound. The nearest material resistance level for silver is located at the 50 EMA at $24.70, although silver may also face some resistance at the recent highs at $24.40.

If silver gets above the 50 EMA, it will test the 20 EMA level at $24.90. A move above the 20 EMA will signal that silver is ready to return to its previous upside mode. In this case, silver will move towards the next resistance level at $25.85.

On the support side, the nearest support level at $23.30 has just proved its strength. If silver manages to settle below this level, it will likely gain downside momentum and head towards the next support level at $22.30. A move below the support at $22.30 will open the way to the test of the next support at the recent lows at $21.65.

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