Silver Price Daily Forecast – Test Of Support At $27.60

Silver Video 08.06.21.

Silver Is Under Pressure

Silver is currently trying to settle below the support at the 20 EMA at $27.60 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is moving towards the nearest resistance level which is located at the 20 EMA at 90.20. In case the U.S. Dollar Index gets above this level, it will head towards the resistance at 90.50 which will be bearish for silver and gold price today.

Gold has recently made an attempt to settle above the resistance at the $1900 level but failed to develop sufficient upside momentum and pulled back. The nearest significant support level for gold is located at the 20 EMA at $1875. If gold gets to the test of this level, silver will find itself under additional pressure.

Gold/silver ratio remains stuck in the range between the support at the 50 EMA at 67.90 and the resistance at 68.70. In case gold/silver ratio manages to settle below the 50 EMA, it will gain downside momentum which will be bullish for silver.

Technical Analysis

The technical picture for silver has not changed in recent trading sessions. Silver needs to settle below the 20 EMA at $27.60 to have a chance to gain downside momentum.

If silver manages to settle below this level, it will move towards the 50 EMA which is located near $27.00. No important levels were formed between the 20 EMA and the 50 EMA so this move may be fast.

A successful test of the support at $27.00 will push silver towards the next support at $26.65. If silver declines below this level, it will head towards the next support at $26.30.

On the upside, silver needs to settle above $27.75 to have a chance to develop upside momentum in the near term. The next resistance level is located at $28.30. If silver manages to settle above the resistance at $28.30, it will move towards the next resistance which is located at $28.90.

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