Silver Price Daily Forecast – Test Of Support At $27.75

Silver Video 19.08.20.

Silver Tries To Settle Above $28.00

Silver continued its attempts to settle above $28.00 as the U.S. dollar remained flat against a broad basket of currencies while gold returned back under the $2000 level.

The U.S. Dollar Index found support near 92.10 and tries to rebound closer to the previous support level at 92.50. Yesterday, the rapid downside move of the U.S. dollar provided significant support to precious metals. In case the U.S. Dollar Index manages to settle below 92.10, silver will get an additional boost.

Meanwhile, gold has returned back below the $2000 level. Most likely, some traders, who bought gold below $1900 during the recent sell-off, decided to take some profits. At this point, gold’s upside trend remains intact.

Gold/silver ratio has settled below 72 and has good chances to get to the test of the recent lows at 69.50 which would be bullish for silver. Gold/silver ratio’s RSI has settled in the moderate territory so there is enough room to gain more downside momentum in case the right catalysts emerge.

Today, silver traders should pay attention to FOMC Minutes which will be released later in the trading session. The details of Fed’s discussions may have a significant impact on the U.S. dollar and risk appetite in general.

Technical Analysis

Silver received support at the previous resistance level at $27.75 and continues its attempts to gain more upside momentum and settle above $28.00.

Yesterday, silver managed to get above $28.00 but faced resistance near $28.50 and declined closer to $27.75.

In case silver gets above $28.00, it will head towards the nearest resistance level at $28.50. A successful test of the resistance at $28.50 will open the way to the recent highs at $29.85 although additional resistance levels may present themselves on the way up.

On the support side, the nearest support level for silver is located at $27.75. this level has already been tested several times and proved its strength. In case silver settles below $27.75, it will likely gain downside momentum and head towards the next important support level at $26.20. In addition, silver may get some support near $27.00.

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