Silver Tests Support At $23.70

Silver ETF Remains Under Significant Pressure

Silver continues its attempts to settle below the support at $23.70 while U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust managed to get below the $22 level.

The U.S. Dollar Index managed to settle above the 96 level and is trying to get above the resistance at 96.25. In case this attempt is successful, it will head towards the next resistance level at 96.50 which will be bearish for silver and gold price today.

Gold has recently made an attempt to settle above the resistance level at $1845 but failed to develop sufficient upside momentum and moved back into the $1830 – $1845 range while SPDR Gold Trust tested the $173 level. In case gold manages to settle above $1845, it will gain additional upside momentum and head towards the next significant resistance level at $1875 which will be bullish for silver.

Gold/silver ratio has recently moved closer to the resistance at the 50 EMA at the 78 level. In case gold/silver ratio gets above this level, it will head towards 78.50 which will be bearish for silver.

Technical Analysis

Silver failed to get above $24.00 and is testing the support level at $23.70. This support level has been tested during yesterday’s trading session and proved its strength.

In case silver declines below $23.70, it will move towards the next support level which is located at $23.50. A successful test of this level will open the way to the test of the support at the 20 EMA at $23.35. In case silver manages to settle below the 20 EMA, it will get to the test of the next support level at the 50 EMA at $23.25.

On the upside, the nearest resistance level for silver is located at $24.00. In case silver moves above this level, it will head towards the next resistance at $24.25. A move above $24.25 will push silver towards the resistance at $24.50.

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