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Silver Price Daily Forecast – Test Of Support At $26.20

By:
Vladimir Zernov
Published: Feb 4, 2021, 15:15 UTC

Silver tries to settle below the 20 EMA.

Silver

In this article:

Silver Video 04.02.21.

Silver Remains Under Pressure

Silver is currently trying to settle below the 20 EMA at $26.20 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to settle above the resistance which has recently emerged at 91.30 and is moving towards the next resistance level at 91.50. If the U.S. Dollar Index settles above this level, it will head towards the next resistance at 91.75 which will be bearish for silver and gold price today.

Gold gained strong downside momentum and managed to settle below the support at $1830. Currently, gold is trying to settle below the next support level at $1800. In case gold manages to settle below $1800, it will continue its downside move and head towards the next support at $1775 which will be bearish for silver and other precious metals.

The volatility of gold/silver ratio has decreased in recent trading sessions, and it is currently located in the range between 68 and 69. If gold/silver ratio manages to get above the 69 level, it will gain additional upside momentum which will be bearish for silver.

Technical Analysis

silver february 4 2021

Silver is currently testing the nearest support level at the 20 EMA at $26.20. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

If silver settles below the 20 EMA, it will head towards the next support level at $25.85. A move below this level will push silver towards the support at the 50 EMA at $25.65. In case silver gets below the 50 EMA, it will move towards the next support at $25.30 although it may also receive support near $25.55.

On the upside, silver needs to stay above the 20 EMA to have a chance to develop upside momentum in the near term. The next resistance level for silver is located at $26.70.

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

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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