Silver Tests Resistance At $24.90

Key Insights

• Gold managed to get out of the recent trading range, which was bullish for silver. 
• Gold/silver ratio declined towards the 78 level. 
• A move above the 20 EMA will push silver towards the resistance at $25.10.

Silver ETF Tests The $23.00 Level

Silver is currently trying to settle back above the 20 EMA at $24.90, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to get back above the $23.00 level.

The U.S. Dollar Index failed to settle above the resistance at 99 and pulled back towards 98.85. If the U.S. Dollar Index declines below this level, it will move towards the support at 98.70, which will be bullish for silver and gold price today.

Gold managed to get above the resistance at $1935 and is trying to gain additional upside momentum, while SPDR Gold Shares ETF is moving towards the $181.50 level. The nearest resistance level for gold is located at $1950. In case gold gets to the test of this level, silver will get more support.

Gold/silver ratio is currently trying to get below the support level at 78. If this attempt is successful, gold/silver ratio will move towards the 50 EMA at 77.75, which will be bullish for silver.

Technical Analysis

Silver is testing the resistance at the 20 EMA at $24.90. Silver has already made an attempt to get above this level in the previous trading session, but this attempt yielded no results.

In case silver settles above the 20 EMA, it will move towards the resistance level, which is located at $25.10. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge. If silver gets above $25.10, it will move towards the rsistance level at $25.30.

On the support side, the nearest support level for silver is located at $24.70. If silver declines below this level, it will head towards the next support at the 50 EMA at $24.55. A successful test of the support at the 50 EMA will open the way to the test of the support at $24.25.

For a look at all of today’s economic events, check out our economic calendar.