Silver Price Daily Forecast – Test Of Resistance At $24.15Silver continues its attempts to settle above the resistance at $24.15.
Silver Video 05.10.20.
Silver Starts The Week On A Strong Note
Silver is currently testing the nearest resistance level at $24.15 as the U.S. dollar is losing ground against a broad basket of currencies amid signs that U.S. President Donald Trump could soon get out of the hospital.
The U.S. Dollar Index has declined below the 20 EMA at 93.65 and is trying to settle below 93.50 as recent reports indicate that the health of the U.S. President is improving.
In this situation, traders increase purchases of riskier assets and get rid of safe haven assets like the U.S. dollar.
If the U.S. Dollar Index gains more downside momentum, silver will get additional support. Weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.
Meanwhile, gold is testing the resistance at the 20 EMA at $1910. If gold manages to get above the 20 EMA, it will gain additional upside momentum which will be bullish for silver and other precious metals.
Gold/silver ratio is trying to get to the test of the nearest support level at the 50 EMA at 78.40. If gold/silver ratio moves below the 50 EMA, it will gain more downside momentum, providing material support to silver prices.
Silver is trying to get above the nearest resistance level at $24.15. In case silver manages to settle above this level, it will gain more upside momentum and head towards the major resistance level at the 50 EMA at $24.65. RSI is in the moderate territory so there is plenty of room to gain upside momentum in case the right catalysts emerge.
If silver moves above the 50 EMA at $24.65 and the 20 EMA at $24.75, it will head towards the next material resistance level at $25.85.
On the support side, the nearest support level for silver is still located at $23.30. If silver manages to get below this support level, it will head towards the next support at $22.30.
From a big picture point of view, silver is consolidating near the $24 level and maintains solid chances to continue its rebound in case the U.S. dollar gains more downside momentum.
For a look at all of today’s economic events, check out our economic calendar.