Silver Price Daily Forecast – Weak U.S. Dollar Pushed Silver Above $27.00

Silver Video 10.09.20.

Silver Gained Upside Momentum After The Release Of U.S. Employment Reports

Silver managed to settle above the 20 EMA at $26.80 and is trying to get to the test of the next resistance level at $27.75 as the U.S. dollar is under serious pressure after the release of disappointing U.S. employment reports.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has developed material downside momentum and declined below the 20 EMA at 93.05.

U.S. Initial Jobless Claims and Continuing Jobless Claims reports were worse than analyst expectations and indicated that the labor market recovery had stalled.

Weak U.S. dollar is bullish for silver as it makes silver cheaper for buyers who have other currencies. If the U.S. Dollar Index declines towards the next support level at 92.50, silver will have good chances to get above the nearest resistance level at $27.75.

Not surprisingly, gold has also benefited from U.S. dollar weakness. Currently, gold managed to settle above the $1950 level and is moving towards the psychologically important $2000 level. If gold gets above the $2000 level, the whole precious metal segment will likely get a material boost.

Gold/silver ratio continues to stay in a range between 71 and 73. The recent attempt to get above the 20 EMA at 72.80 was not successful, and gold/silver ratio maintains solid chances to develop more downside momentum which would be bullish for silver.

Technical Analysis

Silver is currently trying to gain more upside momentum above $27.00. If this attempt is successful, silver will head towards the test of the next resistance level at $27.75.

A move above the resistance at $27.75 will open the way to the test of the next resistance level at $28.50. In case silver is able to get above $28.50, it will move towards the next resistance at the recent highs at $28.90.

On the support side, the nearest support for silver is located at the 20 EMA at $26.80. If silver manages to settle below the 20 EMA, it will gain more downside momentum and head towards the next support level at the recent lows at $25.85.

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