Silver Video 19.10.20.
Silver Attempts To Gain More Momentum Above The 50 EMA
Silver has managed to get above the resistance at the 50 EMA at $24.55 and is trying to gain additional upside momentum as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index declined below 93.50 and is heading towards the nearest support level at 93.00 on hopes for a new coronavirus aid package deal. If the U.S. Dollar Index gets to the test of the 93 level, silver will get more support. Weaker dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.
Meanwhile, gold is trying to settle above its 50 EMA at $1905. At this point, gold failed to develop material upside momentum but maintains solid chances to continue its upside move. If gold gets to the test of the next resistance at $1930, silver and other precious metals will get additional support.
Gold/silver ratio declined below the support at the 20 EMA at 77.95 which is bullish for silver. The next support level for gold/silver ratio is located at the recent lows near 75.50. A move towards this level will be a bullish development for silver.
Silver is currently trying to get more momentum above the support at the 50 EMA at $24.55. If this attempt is successful, silver will head towards the next resistance level at the recent highs at $25.55.
Along the way, silver may face some resistance near the highs of today’s trading session at $25.00. If silver moves above the resistance at $25.55, it will quickly get to the test of the next resistance level at $25.85.
On the support side, the nearest support level for silver is located at $23.90. A move below this level will open the way to the test of the next support at $23.30.
From a big picture point of view, silver managed to get sufficient support near $24.00 and continues its upside move. If the U.S. dollar remains weak, silver will have good chances to get above the recent highs at $25.55.
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This article was originally posted on FX Empire
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