Silver Price Daily Forecast – Support In The $23.50 – $24.00 Area Remains Strong

Silver Video 11.12.20.

Silver Is Mostly Flat Ahead Of The Weekend

Silver is trying to settle below the 20 EMA at $24.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index gained upside momentum and is trying to settle above the resistance at the 91 level. Brexit fears and worries about another stimulus delay provide support to the American currency. If the U.S. Dollar Index settles above 91, it will move towards the next resistance level near the 20 EMA at 91.50 which will be bearish for silver and other precious metals.

However, it should be noted that the U.S. Dollar Index has already made many attempts to settle above the resistance at 91 and always faced strong resistance near this level. In this light, it remains to be seen whether the dynamics of the American currency will have a strong impact on silver and gold price today.

Gold continues to trade below the 20 EMA at $1845. A move above this level will push gold towards the 50 EMA at $1865 which will be bullish for silver.

Gold/silver ratio has recently made another attempt to settle above the 20 EMA at 76.90 but failed to develop sufficient upside momentum. As a result, gold/silver ratio remains stuck near 76.50. This month, the volatility of gold/silver ratio has decreased and it had no serious impact on silver price dynamics. However, the situation may change quickly if gold/silver ratio gets below the major support at 75.50 or settles above the resistance at the 50 EMA at 77.45.

Technical Analysis

Silver has recently made another attempt to get to the test of the support level at $23.50 but failed to gain additional downside momentum and rebounded closer to the 20 EMA at $24.00.

The area between $23.50 and $24.00 continues to serve as a strong support area for silver. If silver settles below $23.50, it will quickly get to the test of the next support level at $23.30. A move below $23.30 will open the way to the next support at $22.90.

On the upside, silver needs to get above the resistance at the 50 EMA at $24.15 to have a chance to develop upside momentum. A move above $24.15 will push silver towards the resistance at $24.60. If silver manages to settle above $24.60, it will continue its upside move and head towards the resistance level at $25.00.

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