Silver Price Daily Forecast – Test Of Support At $21.65

Silver Moved To Yearly Lows

Silver found itself under strong pressure while the U.S. dollar moved to new yearly highs against a broad basket of currencies.

The U.S. Dollar Index has recently managed to settle above the resistance level at 93.90 and is moving towards the next resistance which is located at 94.20. In case the U.S. Dollar Index manages to get above 94.20, it will gain additional upside momentum which will be bearish for silver and gold price today.

Gold is holding well despite strong dollar. Currently, gold is trading in a tight range between $1735 and $1745. The nearest significant support level for gold is located at $1720. If gold declines towards this level, silver will find itself under more pressure.

Meanwhile, gold/silver ratio has moved to new highs and is trying to get to the test of the psychologically important 80 level. RSI for gold/silver ratio remains in the moderate territory, and there is enough room to gain additional upside momentum in case the right catalysts emerge. If gold/silver ratio manages to settle above the 80 level, it will head towards the resistance at 80.50 which will be bearish for silver.

Technical Analysis

Silver managed to settle below the support at $21.90 and is testing the next support level which is located at $21.65. In case this test is successful, silver will move towards the next support at $21.30. RSI is very close to the oversold territory, but there is enough room to develop additional downside momentum.

In case silver settles below $21.30, it will head towards the support at $20.90. A move below this level will open the way to the test of the support at $20.50.

On the upside, the previous support at $21.90 will serve as the first resistance level for silver. If silver gets above this level, it will move towards the resistance at $22.10. A successful test of this level will push silver towards $22.30. In case silver manages to settle above $22.30, it will head towards the resistance at $22.60.

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