Silver Video 30.12.20.
Silver Tries To Gain Upside Momentum
Silver is still trying to settle above the nearest resistance level at $26.30 while the U.S. dollar remains under significant pressure against a broad basket of currencies.
The U.S. Dollar Index managed to get below the support at 89.75 and is moving towards the next support level at 89.40. If the U.S. Dollar Index gets to the test of the support at 89.40, silver may get a boost.
However, it should be noted that weaker dollar does not provide much support to silver and gold price today as investors prefer riskier assets and do not look ready to increase purchases of save haven assets like precious metals.
Gold is currently testing the resistance at $1880. A successful test of this resistance will push gold towards the next resistance at $1900 which will be bullish for silver and other precious metals.
Gold/silver ratio is currently located near 71.50. Volatility decreased, and gold/silver ratio will likely try to stabilize in the 71 – 73 range. If gold/silver ratio declines below 71, it will gain downside momentum and move towards the recent lows at 69.75 which will provide additional support to silver.
The technical situation has not changed at all compared to the previous trading session as silver is still trying to get above the nearest resistance level at $26.30.
Silver has already made several attempts to gain upside momentum above $26.30 but these attempts yielded no results, and it remains to be seen whether silver will be able to attract enough interest in the remaining trading sessions of the year.
If silver settles above $26.30, it will move towards the next resistance level at $27.00. RSI is in the moderate territory so there is plenty of room to gain momentum. A move above $27.00 will open the way to the test of the next resistance level at $27.50.
On the support side, silver should receive solid support near $25.85. In case silver declines below this level, it will move towards the next support level at $25.55.
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This article was originally posted on FX Empire
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