Silver Price Daily Forecast – Test Of Support At $24.50

Silver Video 29.03.21.

Silver Is Under Pressure At The Start Of The Week

Silver is currently trying to settle below the support at $24.50 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index is stuck in the range between the support at 92.70 and the resistance at the 93 level. It has recently made an attempt to get to the test of the resistance at 93 but failed to develop sufficient upside momentum and declined closer to the support at 92.70. If the U.S. Dollar Index settles below this level, it will head towards the next support at 92.50 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold failed to settle above the resistance at the 20 EMA and is currently moving towards the support at the $1700 level. If gold manages to get to the test of this level, silver will find itself under more pressure.

Gold/silver ratio managed to settle above the 69 level and made an attempt to get to the test of the 70 level but faced resistance at 69.70. If gold/silver ratio settles above 69.70, it will gain additional upside momentum which will be bearish for silver.

Technical Analysis

Silver gained strong downside momentum and managed to get below the support at $24.70. Currently, silver is trying to settle below the next support level at $24.50. This support level has been recently tested and proved its strength.

In case silver declines below the support at $24.50, it will head towards the next support level at $24.20. RSI remains in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge. If silver settles below the support at $24.20, it will head towards the next support at $24.00.

On the upside, silver needs to get back above $24.70 to have a chance to develop upside momentum in the near term. The next resistance level is located at $25.00. If silver gets above this level, it will head towards the resistance at $25.20. A successful test of the resistance at $25.20 will open the way to the test of the resistance at $25.55.

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