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Silver Price Daily Forecast – Silver Pulls Back Towards $25.00

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Silver Video 12.10.20.

Silver Is Under Some Pressure After The Recent Upside Move

Silver faced resistance at $25.50 and declined towards $25.00 while the U.S. dollar remained flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above 93.20 but failed to gain sufficient upside momentum and declined towards 93.10. If the U.S. Dollar Index moves towards 93.00 and settles below this level, silver will get additional support. Weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.

Gold is also pulling back after the upside move that was made during the previous trading session. The nearest resistance for gold has emerged at $1930. In case gold manages to settle above this level, it will head towards $1950 which will be bullish for silver and other precious metals.

Gold/silver ratio has recently made an attempt to settle below 76 but rebounded closer to 77. The nearest resistance level for gold/silver ratio is located at the 20 EMA at 77.80. In case gold/silver ratio gets above this level, it will head towards the 50 EMA at 78.40. This scenario will be bearish for silver.

Technical Analysis

Silver managed to get above $25.00 but failed to settle above $25.50. RSI remains in the moderate territory so there is plenty of room to gain additional upside momentum.

In case silver gets above $25.50, it will head towards the resistance at $25.85. A move above $25.85 will open the way to the test of the next resistance area at $26.20 – $26.30.

If silver manages to get above this resistance area, it will gain additional upside momentum and head towards the next resistance area near $27.00.

On the support side, the previous resistance level at the 50 EMA at $24.60 will serve as the first support level for silver. If silver gets below this level, it will gain downside momentum and move towards the next support at $23.30. There are no important levels between $23.30 and $24.60 so this move may be fast.

From a big picture point of view, silver is currently pulling back after a significant upside move, and its upside trend remains intact.

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This article was originally posted on FX Empire

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