Silver failed to settle below the support at $23.30 and is moving towards $24.00.
Silver Rebounds As The U.S. Dollar Loses Ground Against A Broad Basket Of Currencies
Silver is rebounding after yesterday’s sell-off as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index failed to settle above the resistance at the 50 EMA at 93.85 and is trying to get below the nearest support level at the 20 EMA at 93.65. If this attempt is successful, the U.S. Dollar Index will gain more downside momentum which will be bullish for silver.
Meanwhile, gold is trading below the $1900 level and fails to show any material upside momentum. If gold fails to get back above the $1900 level, it may develop additional downside momentum which will be bearish for silver.
Gold/silver ratio continues to stabilize near the 80 level. The nearest resistance for gold/silver ratio is located at 81.50. A move above this level will put additional pressure on silver. At the same time, a move below the support at the 50 EMA at 78.50 will likely help silver to get back above $24.00.
In the upcoming trading sessions, silver traders will likely focus on the stimulus drama which will continue to fuel volatility in the precious metal segment.
Silver managed to gain upside momentum and got back above the support level at $23.30. The nearest resistance level for silver is still located at the 50 EMA at $24.55.
There are no material levels between the support at $23.30 and the resistance at the 50 EMA so silver is set to remain volatile inside this trading range. In case silver manages to settle above the 50 EMA, it will gain upside momentum and head towards the next resistance level at $25.85.
On the support side, silver’s nearest support is still located at $23.30 although silver has shown that it can temporarily get below this level. A move below the support at $23.30 will open the way to the test of the next support which has emerged at $22.90.
The 20 EMA is about to cross the 50 EMA to the downside, suggesting that silver may start to gain additional downside momentum. If this happens, silver will settle below the support at $22.90 and move towards the test of the support level at $22.30.