Silver Price Daily Forecast – Silver Tests Resistance At The 50 EMA
Silver Video 10/9/20.
Silver is gaining ground on the weaker US dollar
Silver gained momentum, testing the 50 EMA level at $ 24.55 as the US dollar loses ground against a broad basket of currencies.
Traders expect US lawmakers to ultimately reach consensus on the new coronavirus aid package. The expectation of a new economic cycle is putting pressure on the American currency and strengthening precious metals.
The US dollar index broke below the 93.35 support and is trying to create additional bearish momentum. The closest significant level of support for the US dollar index is at 92.80.
If the US dollar index approaches this level, silver will gain more ground. A weaker dollar is bullish on silver because it is cheaper for buyers with other currencies.
Gold has managed to break above the 50 EMA at $ 1905 and is moving towards the $ 1950 level. If gold continues its uptrend, silver has a good chance of surpassing the $ 25 level.
Meanwhile, the gold / silver ratio fell below the 50 EMA support at 78.55 and tested the 20 EMA level at 78.10. If the gold / silver ratio drops below the 20 EMA it will gain bearish momentum, which will be bullish for silver.
Silver is currently trying to move above the closest resistance level at $ 50 EMA at $ 24.55. The RSI is in the moderate territory and there is plenty of room to gain additional upside momentum if the US dollar continues to lose ground against a broad basket of currencies.
If silver manages to stabilize above $ 24.55, it will move towards the next resistance level at $ 25.85. The downward move that occurred in late September has been rapid and there are no major levels between $ 24.55 and $ 25.85.
If silver rises above the resistance at $ 25.85, it will move towards the next resistance area at $ 26.20 - $ 26.30.
On the support side, the closest support is at $ 23.30, and there are no significant support levels between $ 23.30 and $ 24.55. If silver moves below $ 23.30 it will move towards the next support at $ 22.90.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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