Silver Video 14.09.20.
Silver Enjoys Solid Upside Momentum At The Beginning Of The Week
Silver is trying to settle above $27.00 as the U.S. dollar is losing ground against a broad basket of currencies while fears about a second wave of lockdowns provide additional support to precious metals.
The U.S. Dollar Index managed to get below the 20 EMA at 93.10 and is trying to settle below the 93 level as the British pound shows strength against the American currency. If this attempt is successful, the U.S. Dollar Index will gain more downside momentum which will be bullish for silver.
Israel decided to a impose a second lockdown, increasing fears of another wave of lockdowns in countries that struggle to contain the virus. Safe haven assets like Japanese yen and precious metals received additional support thanks to this development.
Gold continues its attempts to settle above the 20 EMA at $1945. If gold manages to get to the test of the psychologically important $2000 level, the whole precious metal segment will get a material boost.
Meanwhile, gold/silver ratio remains in a range between 71 and 73. Gold/silver ratio needs to stay below the 20 EMA at 72.80 to have a chance to test the recent lows near the 69 level, which will be bullish for silver.
Silver managed to stay above the key support level at the 20 EMA at $26.80 and is trying to gain more upside momentum above $27.00. If this attempt is successful, silver will head towards the next resistance level at $27.75.
RSI is in the moderate territory so silver has plenty of room to gain more upside momentum in case the right catalysts emerge. A move above the resistance at $27.75 will open the way to the test of the next resistance level at $28.50.
If silver is able to settle above the resistance at $28.50, it will head towards the next resistance at $28.90.
On the support side, the nearest support for silver is still located at the 20 EMA level. A move below the 20 EMA may lead to a sell-off, pushing silver closer to the next support level at the recent lows at $25.85.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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