Silver Tests Resistance At $24.20

Silver ETF Is Moving Higher In Premarket Trading

Silver is currently trying to settle above the resistance at $24.20 while the U.S. dollar is under pressure against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the $22.30 level in premarket trading.

The U.S. Dollar Index made an attempt to settle above the resistance at 96.25 but failed to develop sufficient upside momentum and pulled back below the support level at 96. In case the U.S. Dollar Index manages to settle below this level, it will move towards the support at the 50 EMA near 95.85, which will be bullish for silver and gold price today. A weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold managed to settle above the $1900 level and tested the next resistance at $1915, while SPDR Gold Trust moved above $177.50 in premarket trading. Geopolitical tensions continue to increase, so gold has a good chance to get above the $1915 level. In this scenario, it will gain additional upside momentum and head towards the resistance at $1930, which will be bullish for silver.

Meanwhile, gold/silver ratio settled below the 20 EMA at 79 and is testing the support at the 50 EMA at 78.65. If gold/silver ratio declines below this level, it will head towards the 78 level, which will be bullish for silver.

Technical Analysis

Silver is currently testing the resistance at $24.20. In case this test is successful, silver will move towards the next resistance level at $24.50.

A move above the resistance at $24.50 will open the way to the test of the resistance at $24.70. If silver manages to settle above this level, it will head towards the next resistance level at $25.00.

On the support side, the previous resistance at $24.00 will serve as the first support level for silver. If silver declines below this level, it will head towards the support at $23.70.

A successful test of the support at $23.70 will push silver towards the support at the 20 EMA at $23.50. If silver declines below this level, it will move towards the next support level, which is located at the 50 EMA at $23.30.

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