Silver Price Daily Forecast – Test Of Resistance At $23.20

Silver Gains Ground As Dollar Declines After Disappointing Non Farm Payrolls Report

Silver has recently made an attempt to settle above the resistance at $23.20 while the U.S. dollar lost ground against a broad basket of currencies.

The U.S. Dollar Index found itself under pressure after the release of Non Farm Payrolls report. The report indicated that the U.S. economy created just 194,000 jobs in September compared to analyst consensus of 500,000, which was bearish for the American currency. Currently, the U.S. Dollar Index is trying to settle below the support at 94. In case the U.S. Dollar Index manages to get below this level, it will move towards the next support at 93.75 which will be bullish for silver and gold price today.

Meanwhile, gold made an attempt to settle above the important resistance level at $1775 but failed to develop sufficient upside momentum and pulled back. The yield of 10-year Treasuries has recently managed to get back to the 1.60% which was bearish for gold and other precious metals. If gold gets to the test of the nearest support at $1750, silver may find itself under some pressure.

Gold/silver ratio managed to settle below the 20 EMA at 77.40 and is testing the 77 level. In case this test is successful, gold/silver ratio will head towards the support at 76.50 which will be bullish for silver.

Technical Analysis

Silver tried to get above $23.20 but faced strong resistance and pulled back towards the 20 EMA near $22.80. In case silver stays above the 20 EMA, it will have another chance to test the resistance level at $23.20.

A successful test of this resistance level will open the way to the test of the resistance at the 50 EMA at $23.50. If silver manages to settle above the 50 EMA, it will move towards the next resistance level which is located at $23.90.

On the support side, a move below the 20 EMA will push silver towards the support at $22.60. In case silver declines below this level, it will head towards the support at $22.30. A successful test of the support at $22.30 will open the way to the test of the support at $22.10.

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