Silver Price Daily Forecast – Silver Rebounds From Support At The 20 EMA
Silver video 06/25/20.
Silver is gaining ground despite the stronger US dollar
Silver was able to stay above the support level despite the stronger US dollar at an EMA of 20 at $ 17.50 as the gold / silver ratio returned below 100.
The US dollar index is trying to stabilize above the 97.5 resistance as traders remain concerned about the second wave of the corona virus. While a stronger US dollar is bearish for silver as it becomes more expensive for buyers with other currencies, the strength of the American currency is offset by the falling gold / silver ratio.
Yesterday I wrote that the next resistance level for the gold / silver ratio at 50 EMA is 101.80 and that moving above that level would pave the way to the next resistance at 108.
While this threat is still real, the gold / silver ratio is currently trying to drop below the bullish level of 100 for silver. To continue the downtrend, the gold / silver ratio at 99.40 must drop below the 20 EMA.
In the meantime, gold continues to trade above $ 1,750, which is optimistic for the entire precious metals segment. In my opinion, gold has a lot of room to develop upward momentum, especially when stock markets are under more pressure due to concerns about the second wave of the corona virus.
The technical picture for silver has not changed for some time. Silver has a very solid support at $ 17.50. This level of support has been tested many times and has shown its strength as any attempt to get below $ 17.50 will result in increased buyer activity.
Should silver fall below such a strong level, it will likely gain significant downward momentum as many traders who have put their protection stops below $ 17.50 will get out quickly.
In this scenario, silver quickly reaches the next key support level near the 50 EMA at $ 17.00.
On the upside, silver needs to rise above resistance at $ 18.00 to test the resistance test near recent highs below $ 18.50. The RSI is at a very comfortable level, so silver has plenty of room to develop upward momentum if the right catalysts emerge.
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This article was originally published on FX Empire
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