Silver Price Daily Forecast – Test Of Resistance At $27.50

Silver Video 04.01.21.

Silver Moves Higher On Weaker Dollar

Silver is currently testing the resistance at $27.50 while the U.S. dollar remains under significant pressure against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the support at 89.55. The U.S. Dollar Index has already tried to get to the test of the next support level at 89.40 but this attempt was stopped at 89.42. If the U.S. Dollar Index declines below this level, it will gain additional downside momentum which will be bullish for silver and other precious metals.

Meanwhile, gold managed to settle above the resistance at the $1900 level and is trying to settle above the next resistance at $1930. If this attempt is successful, gold will move towards the resistance at $1960 which will provide additional support to silver.

Gold/silver ratio gained downside momentum and is trying to settle below the 71 level. If gold/silver ratio moves towards the next support level which is located at December lows at 69.75, silver will get a boost.

Technical Analysis

Silver managed to settle above the resistance at $27.00 is is trying to settle above the next resistance level at $27.50. RSI is very close to the overbought territory but there is still plenty of room to gain additional momentum in case the right catalysts emerge.

If silver settles above the resistance at $27.50, it will head towards the next resistance level at $27.75. A move above $27.75 will push silver towards the resistance at $28.30. In case silver gets above $28.30, it will move towards the resistance at $28.90. It should be noted that there are no significant levels between $28.30 and $28.90 so this move may be fast.

On the support side, the previous resistance at $27.00 will likely serve as the first support level for silver. No material levels were formed between $27.00 and $27.50 so silver may quickly get to the test of this level.

If silver declines below the support at $27.00, it will head towards the next support level at $26.70. A move below $26.70 will open the way to the test of the key support level at $26.30.

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