Silver Tests Support At $22.10

Silver ETF Declines Despite Weaker Dollar

Silver is currently trying to settle below the support at $22.10 while U.S. dollar is under pressure against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.50.

The U.S. Dollar Index managed to settle below the support level at 95.75 and is moving towards the next support at 95.40. In case the U.S. Dollar Index declines below this level, it will head towards the support at 95.20 which may provide some support to silver and gold price today.

Gold faced resistance near the 50 EMA at $1810 and pulled back below the $1800 level while SPDR Gold Trust moved towards the $167 level. In case gold manages to settle back below $1800, it will gain downside momentum and head towards the support level at $1785 which will be bearish for silver.

Gold/silver ratio managed to settle above the psychologically important 80 level and is trying to settle above 81. In case this attempt is successful, gold/silver ratio will head towards the 82 level which will be bearish for silver.

Technical Analysis

Silver settled below the support at $22.30 and is trying to settle below the next support level at $22.10. In case silver manages to settle below this level, it will head towards the next support level which is located at $21.90.

A move below the support at $21.90 will push silver towards the support at $21.70. If silver gets below this level, it will head towards the support which is located near December lows at $21.50.

On the upside, silver needs to stay above $22.10 to have a chance to gain upside momentum in the near term. The previous support level at $22.30 will serve as the first resistance level for silver. If silver gets above this level, it will head towards the resistance at $22.60. A successful test of the resistance at $22.60 will push silver towards the resistance at $22.80.

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