Silver Price Daily Forecast – The 50 EMA Is A Key Level For Silver

Silver Tries To Develop Upside Momentum

Silver is trying to settle above the resistance at the 50 EMA at $24.10 after it made an attempt to settle below the 20 EMA at $23.90 while the U.S. dollar is trying to rebound against a broad basket of currencies.

The U.S. Dollar Index gained upside momentum and made an attempt to settle above the nearest resistance at 91. The main driver for this move was the weakness of GBP/USD which found itself under pressure on fears about a no-deal Brexit. If the U.S. Dollar Index settles above 91, it will head towards 91.50 which may put additional pressure on silver.

Gold continues to trade near the resistance level at the 20 EMA at $1840. If gold manages to settle above this level, it will gain upside momentum and head towards the next resistance at the 50 EMA at $1870 which will be bullish for silver and other precious metals.

Gold/silver ratio has recently made an attempt to settle above the 20 EMA at 77.15 but failed to develop sufficient upside momentum. A move above the 20 EMA will push gold/silver ratio towards the 50 EMA at 77.60 which will be bearish for silver.

Meanwhile, U.S. Republicans and Democrats are trying to negotiate a new coronavirus aid package, but these negotiations fail to provide any support for silver and gold price today.

Technical Analysis

Silver has recently made an attempt to settle below the nearest support at the 20 EMA at $23.90. This attempt was not successful, and silver remained stuck in a tight range.

Silver will likely develop strong momentum if it manages to settle above the 50 EMA. In this case, silver may quickly get to the test of the next resistance level near $24.60. A successful test of this level will push silver towards the resistance at $25.00.

On the support side, the 20 EMA remains a very important level for silver. While silver managed to get below the 20 EMA several times in recent trading sessions, it quickly rebounded after each attempt to settle below this level.

In case silver manages to settle below the 20 EMA, it will head towards the next support at $23.30. A move below this level will push silver towards the support at $22.90.

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