Silver Price Daily Forecast – Test Of Resistance At $25.85

Silver Video 17.12.20.

Silver Continues To Move Higher

Silver is currently trying to settle above the resistance at $25.85 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the support at 90 and continues its downside move. Stimulus hopes put pressure on the American currency which is bullish for silver and gold price today.

Gold managed to get above the resistance at the 50 EMA at $1865 and is moving towards the $1900 level. If gold manages to settle above $1900, it will gain additional upside momentum which will provide support to silver and other precious metals.

Gold/silver ratio declined below the support level at 73.50 and continues its downside move. The next significant support for gold/silver ratio is located at 71.50. If gold/silver ratio gets to the test of this level, silver will get an additional boost.

At this point, the market situation is favorable for silver as weak dollar and declining gold/silver ratio provide sufficient support. If these catalysts remain in play in the upcoming trading sessions, silver will have a good chance to settle in the $26 – $27 range.

Technical Analysis

Silver gained strong upside momentum and is trying to settle above the resistance at $25.85. RSI is still in the moderate territory so there is plenty of room to gain additional momentum in case the right catalysts emerge.

If silver settles above the resistance at $25.85, it will head towards the next resistance level at $26.30. A move above $26.30 will open the way to the test of the resistance at $27.00. If silver gets above $27.00, it will move towards the next resistance level at $27.50.

On the support side, silver needs to get back below $25.85 to have a chance to develop downside momentum. If silver declines below this level, it will head towards the next support at $25.55. A move below $25.55 will push silver towards the support at $25.30. In case silver declines below $25.30, it will get to the test of the support at $25.00.

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