Silver Price Daily Forecast – Test Of Resistance At $25.00

Silver Video 16.12.20.

Silver Gained Strong Upside Momentum As Gold/Silver Ratio Declined Below The Key Support Level

Silver is trying to settle above the resistance at $25.00 while the U.S. dollar is under pressure against a broad basket of currencies.

The U.S. Dollar Index managed to settle below the support at 90.50 and gained downside momentum. Weak dollar is clearly serving as a bullish catalyst for silver and gold price today. In case the U.S. Dollar Index manages to get to the test of the psychologically important 90 level, silver will get additional support.

Gold is currently trying to get above the resistance at the 50 EMA at $1865. In case gold settles above this level, it will head towards the $1900 level which will be bullish for silver and other precious metals.

Gold/silver ratio has finally managed to get below the key support level at 75.50 and developed strong downside momentum. The next material support for gold/silver ratio is located at 73.50. If gold/silver ratio gets to the test of this level, silver will get a boost.

Today, silver traders will focus on the upcoming Fed Interest Rate Decision. If the Fed expands its asset purchase program, the U.S. dollar may move even lower and provide more support to silver.

Technical Analysis

Silver gained strong upside momentum and is trying to settle above the resistance at $25.00. It has already tested the next resistance level at $25.30 but pulled back. If silver manages to settle above $25.00, it will get to another test of the resistance at $25.30 and should have better chances to settle above this level.

In case silver gets above the resistance at $25.30, it will move towards the next resistance at $25.55. RSI is in the moderate territory so there is plenty of room to gain additional momentum in case the right catalysts emerge. A successful test of the resistance at $25.55 will open the way to the test of the next resistance level at $25.85.

On the support side, the previous resistance at $24.60 will likely serve as the first support level for silver. A move below this level will push silver towards the next support level at the 50 EMA at $24.20.

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