Silver Price Daily Forecast – Silver Rebounds On Weaker U.S. Dollar

Silver Video 10/7/20.
Silver rallies as the US dollar loses ground against a broad basket of currencies
Silver rallies from yesterday's sell-off as the US dollar loses ground against a broad basket of currencies.
The US dollar index failed to stabilize above the resistance at 50 EMA at 93.85 and is attempting to break below the next support level at 93.65 at 20 EMA. If this attempt is successful, the US dollar index will gain more bearish momentum, which will be bullish for silver.
Meanwhile, gold is trading below the $ 1900 level and showing no significant upward momentum. If gold does not return above the $ 1900 level, additional bearish momentum may develop that will be bearish for silver.
The gold / silver ratio continues to stabilize near the 80 level. The next resistance for the gold / silver ratio is at 81.50. Moving above this level puts additional pressure on silver. At the same time, a move below the 50 EMA support at 78.50 will likely help silver move back above $ 24.00.
In the upcoming trading sessions, silver traders are likely to focus on the stimulus drama that will further fuel volatility in the precious metals segment.
Technical analysis
Silver gained momentum and was back above the support level at USD 23.30. The next level of resistance for silver is still at 50 EMA at $ 24.55.
There are no significant levels between the support at USD 23.30 and the resistance at 50 EMA, so silver will remain volatile within this trading range. If silver manages to stabilize above the 50 EMA, it will gain upside momentum and approach the next resistance level at $ 25.85.
On the support side, silver's closest support is still at $ 23.30, although silver has shown it can temporarily drop below this level. Moving below the USD 23.30 support opens the way to test the next support which has surfaced at USD 22.90.
The 20 EMA is about to cross the 50 EMA on the downside, suggesting that silver may gain additional downside momentum. In this case, silver will be below the support at $ 22.90 and approaching the test of the support level at $ 22.30.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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