Silver Price Daily Forecast – Test Of Resistance At $24.15

Silver Video 03.12.20.

Silver Tries To Gain Additional Upside Momentum

Silver continues its attempts to settle above the 50 EMA at $24.15 while the U.S. dollar remains under huge pressure against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at the 91 level and is trying to get to the test of the next support at 90.60. The sell-off has intensified, but weaker dollar does not provide much support to silver and gold price today.

If the U.S. Dollar Index manages to settle below the support at 90.60, it will head  towards the 90 level which could boost silver.

Gold is currently testing the nearest resistance level at the 20 EMA at $1845. If this test is successful, gold will gain additional upside momentum and head towards the next resistance level at the 50 EMA at $1870. This scenario will be bullish for silver and other precious metals.

Meanwhile, gold/silver ratio continues to rebound after an unsuccessful attempt to settle below the major support level at 75.50. The nearest resistance level for gold/silver ratio is located at the 20 EMA at 77.30. If gold/silver ratio gets to the test of this level, silver will find itself under pressure.

Technical Analysis

Silver is currently testing the nearest resistance at the 50 EMA at $24.15. The resistance at the 50 EMA has already proven its strength in recent weeks, and even the weak dollar has so far failed to push silver above the 50 EMA.

RSI remains in the moderate territory so there is plenty of room to gain additional upside momentum. If silver settles above the 50 EMA, it will head towards the next resistance level near $24.60.

A move above $24.60 will push silver towards the next resistance at $25.00. This resistance level is set to be a strong obstacle on the way up for silver since recent attempts to gain upside momentum above this level were followed by strong sell-offs.

On the support side, the situation has not changed compared to the previous trading session. The nearest support level is located at the 20 EMA at $23.85, and a move below this level will push silver towards the support at $23.30. A successful test of the support level at $23.30 will open the way to the next support at $22.90.

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