Silver Price Daily Forecast – Support At $26.70 Remains Strong

Silver Video 11.02.21.

Silver Remains In The $27.00 – $27.50 Range

Silver made an attempt to settle below the support at $27.00 but failed to develop downside momentum and rebounded back above this level while U.S. dollar lost some ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level at 90.30. This level has already been tested several times and proved its strength. A move below 90.30 will push the U.S. Dollar Index towards the support at the 90 level which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold is currently trying to get back above the 20 EMA at $1845. If this attempt is successful, gold will move towards the next resistance level at the 50 EMA at $1855 which will provide additional support to silver. The 50 EMA is a major obstacle on the way up for gold, and a move above this level will be a material bullish development.

Gold/silver ratio has recently made an attempt to settle above the 68 level but did not manage to gain sufficient upside momentum. If gold/silver ratio settles above 68, it will move towards the next resistance level at the 20 EMA at 69.40 which will be bearish for silver.

Technical Analysis

Silver has recently tried to settle below $27.00 but received material support at $26.70 and moved back above $27.00. As a result, silver continues to trade in the range between the support at $27.00 and resistance at $27.50.

If silver manages to settle below $27.00, it will get to another test of the support level at $26.70. The next support level is located at the 20 EMA at $26.60 so silver will likely receive strong support in the $26.60 – $26.70 area. If silver declines below the 20 EMA, it will head towards the support at $26.30.

On the upside, a move above the resistance at $27.50 will push silver towards the next resistance at $27.75. If silver gets above this level, it will head towards the next resistance at $28.30.

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