Silver Price Daily Forecast – Test Of Resistance At $24.60

Silver Video 08.12.20.

Silver Continues To Move Higher

Silver  managed to settle above the 50 EMA at $24.15 and is trying to settle above the next resistance level at $24.60 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle above the nearest resistance level at 91 but failed to develop sufficient upside momentum. If the U.S. Dollar Index gets above 91, it will head towards the next resistance level at 91.50. Stronger U.S. dollar is typically bearish for silver and other precious metals as it makes them more expensive for buyers who have other currencies.

Meanwhile, challenging Brexit negotiations and virus fears provide support to silver and gold price today. Gold managed to settle above the 20 EMA at $1845 and is trying to get above the 50 EMA at $1870. If gold settles above the 50 EMA, it will gain additional upside momentum and head towards $1900 which will be bullish for silver.

Gold/silver ratio has recently made an attempt to get below the key support at 75.50 but did not manage to develop sufficient downside momentum. If gold/silver ratio declines below this level, it will head towards the next support at 74.70 which will provide additional support to silver.

Technical Analysis

Silver is currently testing the nearest resistance level at $24.60. If this test is successful, silver will head towards the next resistance at $25.00.

A move above $25.00 will open the way to the test of the next resistance level at $25.30. It remains to be seen whether this resistance level will be strong enough as silver easily got above $25.30 during its previous move above $25.00 in early November. In case silver settles above $25.30, it will head towards the next resistance level at October highs at $25.55.

On the support side, the previous resistance at the 50 EMA at $24.15 will serve as the first support level for silver. If silver declines below this level, it will head towards the next support at the 20 EMA at $24.00.

A move below the 20 EMA may present a serious problem for silver bulls. However, it should be noted that recent attempts to settle below the 20 EMA yielded no results.

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