Silver tries to settle above the high end of the current trading range at $27.50.
Silver Gains Ground On Weaker Dollar
Silver is currently testing the resistance level at $27.50 while the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index gained downside momentum and managed to get below the support at 90.30. If the U.S. Dollar Index settles below this level, it will head towards the next support at the 90 level which will be bullish for silver and gold price today. Weak dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold is testing the nearest resistance level which is located at $1785. If gold manages to settle above this level, it will head towards the next resistance at the $1800 level which will be bullish for silver and other precious metals. I’d note that gold still lacks momentum which is a worrisome development for silver bulls.

Meanwhile, gold/silver ratio is trying to settle below the 65 level. If this attempt is successful, it will have a good chance to move below recent lows near 64.80 which will be bullish for silver.
Silver has recently made an attempt to settle below the low end of the current trading range at the $27 level but failed to develop sufficient downside momentum and rebounded back above $27.00.

Silver has also tested the high end of the current $27.00 – $27.50 trading range but this test was not successful. If silver manages to settle above $27.50, it will quickly move towards the next resistance level which is located at $27.75. A move above this level will open the way to the test of the resistance at $28.30. There are no important levels between $27.75 and $28.30 so this move may be fast.

On the support side, the nearest support level for silver is still located at $27.00. If silver moves below this level, it will get to the test of the next support at the 20 EMA at $26.90. In case silver declines below $26.90, it will head towards the support at $26.70.

Leave a comment