Silver Price Daily Forecast – Silver Pulls Back At The Start Of The Week
Silver Video 26.10.20.
Strong U.S. Dollar Puts Pressure On Silver
Silver declined below the 50 EMA at $24.55 as the U.S. dollar gained ground against a broad basket of currencies amid virus fears and stimulus uncertainty.
The U.S. Dollar Index continues its attempts to settle above the nearest resistance level at 93. If the U.S. Dollar Index manages to settle above this level, it will gain additional upside momentum and head towards the 20 EMA at 93.30 which will be bearish for silver.
Meanwhile, gold continues to trade near its 50 EMA at $1905. In recent trading sessions, gold made several attempts to move away from this level, but these attempts were not successful. If gold settles above the 50 EMA, it will have a chance to develop upside momentum which will be bullish for silver and other precious metals.
Gold/silver ratio is currently testing the resistance at the 50 EMA at 78.20. A move above the 50 EMA will open the way to the test of the next resistance at the 80 level which will be bearish for silver.
Technical Analysis
Silver is currently trying to settle below the nearest support level at the 50 EMA at $24.55. If this attempt is successful, silver will gain additional downside momentum and head towards the next support level at $23.90. RSI is in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.
If silver manages to get below the support at $23.90, it will head towards the next support level at $23.30. A move below $23.30 will push silver towards the support level at October lows at $22.90.
On the upside, silver needs to get back above the 50 EMA to have a chance to develop upside momentum. If silver is able to settle above this level, it will head towards the next resistance at $25.00.
In case silver gets above $25.00, it will move towards the resistance at October highs at $25.55. A move above this resistance level will push silver towards the next resistance level at $25.85.
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This article was originally posted on FX Empire
