Silver Price Daily Forecast – Support At $26.20 Stays Strong

Silver Video 26.08.20.

Silver Made Another Attempt To Settle Below The Nearest Support At $26.20

Silver continues to trade under $27.00 as the U.S. dollar is mostly flat against a broad basket of currencies while gold remains under some pressure.

The U.S. Dollar Index has settled above the 93 level and made another attempt to get above the 20 EMA at 93.40. This attempt was not successful which is bullish for silver.

In case the U.S. Dollar Index manages to get above the 20 EMA, it will gain more upside momentum and head towards the 94 level. This scenario is bearish for silver since stronger dollar makes silver more expensive for buyers who have other currencies.

Meanwhile, gold remains under some pressure as U.S. government bond yields continue to increase. Rising yields on safe-haven bonds make them more attractive compared to precious metals that pay no interest.

Gold/silver ratio remains near the 72 level. In case gold/silver ratio continues its previous downside move after a period of consolidation, silver will get more support.

The key upcoming driver for silver and other precious metals is Fed Chair Jerome Powell’s speech at Jackson Hole Symposium. If Powell sounds dovish enough, U.S. dollar will find itself under pressure while precious metals will rally.

Technical Analysis

Silver has once again tested the support level at $26.20 but failed to settle below this level. The 20 EMA continues to rise and has already reached the $26 level, which makes the support at $26.20 stronger.

The 20 EMA remains a key level for silver. In case silver manages to settle below the 20 EMA, it may gain significant downside momentum as a move below this level will signal that the upside momentum has come to an end.

In this case, silver may quickly fall towards the next support at $24.95.

On the upside, the nearest significant resistance level for silver is located at $27.75. In addition, silver may face some resistance near $27.00. If silver manages to settle above the resistance at $27.75, it will gain upside momentum and head towards the recent highs at $28.50.

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