Silver Retreats As Dollar Rallies To New Highs

Key Insights

• U.S. dollar gained strong upside momentum, which was bearish for silver. 
• Gold moved towards the support level at $1965. 
• A move below $25.30 will push silver towards the support at $25.10.

Silver ETF Is Under Strong Pressure At The Start Of The Trading Session

Silver is currently trying to settle below the support at $25.30, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the $23.50 level.

The U.S. Dollar Index gained strong upside momentum after dovish comments from ECB, which left its interest rate unchanged at 0% and kept the deposit facility rate at -0.5%. Currently, the U.S. Dollar Index is trying to settle above 100.50. In case this attempt is successful, the U.S. Dollar Index will move towards the next resistance at 100.85, which will be bearish for silver and gold price today.

Gold  faced strong resistance near $1975 and pulled back towards the support level at $1965, while SPDR Gold Shares ETF declined towards the $183 level. In case gold settles below $1965, it will head towards the support at $1950, which will be bearish for silver.

Gold/silver ratio has recently moved back above the 77 level and is trying to settle above 77.50. A move above this level will open the way to the test of the resistance at 78, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $25.30. In case this test is successful, silver will move towards the next support, which is located at $25.10.

A move below the support at $25.10 will lead to the test of the next support at the 20 EMA at $25.00. If silver declines below the 20 EMA, it will head towards the 50 EMA near $24.70.

On the upside, the nearest resistance level for silver is located at $25.60. In case silver manages to settle back above this level, it will head towards the next resistance at $25.80. A successful test of the resistance at $25.80 will push silver towards the resistance at the $26 level.

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