Silver Price Daily Forecast – Test Of The 20 EMA At $26.75

Silver Video 03.09.20.

Silver Remains Under Pressure

Silver tested the 20 EMA level at $26.75 as the U.S. dollar continued to rebound against a broad basket of currencies, putting pressure on precious metals.

Weak Euro Area Retail Sales report provided additional support to the American currency, and the U.S. Dollar Index made an attempt to settle above the 20 EMA at the 93 level.

This attempt was not successful but U.S. Dollar Index maintains decent chances to get above the 20 EMA. If this happens, it will gain additional upside momentum and put more pressure on silver and other precious metals.

Meanwhile, gold is trading below the 20 EMA at $1945 and has the potential to develop more downside momentum. In this case, silver will face more pressure and decline below the 20 EMA at $26.75.

Gold/silver ratio has rebounded from recent lows and returned back to the previous range between 71 and 73. Gold/silver ratio’s 20 EMA is located just above 73 so this level will likely serve as a strong resistance.

In case gold/silver ratio moves above the 20 EMA, it will gain more upside momentum which would be bearish for silver.

Technical Analysis

Silver made an attempt to get below the 20 EMA at $26.75 but did not manage to gain more downside momentum. The support at the 20 EMA will likely be strong so silver will need additional catalysts to get below this level.

If silver is able to settle below the support at the 20 EMA, it will head towards the next support level at $26.20. A move below $26.20 will open the way to the test of the next support level at $24.95.

On the upside, the nearest resistance for silver is located at $27.75. Silver has recently tried to get above this level but failed to gain upside momentum.

If silver settles above the resistance at $27.75, it will head towards the next resistance level at $28.50.

U.S. dollar will continue to serve as a major catalyst for silver in the upcoming trading sessions. If the U.S. dollar continues its rebound, silver will likely settle below the 20 EMA and gain more downside momentum.

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