Silver Video 15.09.20.
Silver Gained Additional Momentum Above $27.00
Silver managed to settle above $27.00 and continues its upside move as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to gain more downside momentum below the 93 level. The nearest support level for the U.S. Dollar Index is located at 92.80, and a move below this level will provide additional support for silver. A weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.
As industrial demand is an important component of the total demand for silver, strong Industrial Production data from China provided additional support to silver prices. A rebound in China’s Retail Sales provided hopes for increased jewelry consumption.
Gold was also boosted by the weaker U.S. dollar and managed to settle above the $1950 level. The nearest material resistance level for gold is located at $1975. If gold gets above this level, it will gain additional upside momentum and provide support to the whole precious metal segment.
Gold/silver ratio remains in the range between 71 and 73 but slowly trends lower. A move below the 71 level will open the way to the test of the recent lows at 69 which will be bullish for silver.
Silver is currently trying to get to the test of the nearest resistance level at $27.75. If silver manages to settle above this level, it will gain more upside momentum and head towards the next resistance at $28.50.
A move above the resistance at $28.50 will open the way to the test of the next resistance level at $28.90, which is the last significant resistance level before the major resistance at multi-year highs at $29.85.
On the support side, the 20 EMA will continue to serve as the nearest support level for silver. In recent trading sessions, silver consolidated near this level and made several attempts to gain more downside momentum. These attempts failed, and the support at the 20 EMA proved its strength.
If silver gets below the 20 EMA, it will experience increased downside momentum and head towards 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
More From FXEMPIRE:
- Oil Price Fundamental Daily Forecast – Capped by Elevated Concerns Over Fuel Demand
- USD/JPY Daily Forecast – Test Of Resistance At 104.70
- EUR/USD Price Forecast – Euro Hanging Onto Support
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Latest Markets Videos
- Fed could cut rates in 2023, 2024 once inflation under control -Bullard
- US STOCKS-Wall St plunges as Snap's bleak forecast sparks selloff
- All Fed officials backed May rate hike, 'most' saw half-point rises in June and July, minutes show
- US STOCKS-Wall Street surges on upbeat retail guidance, easing Fed fears