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Silver Price Daily Forecast – Silver Tests Resistance At The 50 EMA

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Silver Video 09.10.20.

Silver Gains Ground On Weaker U.S. Dollar

Silver gained upside momentum and is testing the 50 EMA level at $24.55 as the U.S. dollar is losing ground against a broad basket of currencies.

Traders expect that U.S. lawmakers will ultimately reach consensus on the new coronavirus aid package. Expectations of a new round of stimulus put pressure on the American currency and boost precious metals.

The U.S. Dollar Index managed to get below the support at 93.35 and is trying to develop additional downside momentum. The nearest significant support level for the U.S. Dollar Index is located at 92.80.

In case the U.S. Dollar Index moves towards this level, silver will gain more ground. Weaker dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.

Gold managed to get above the 50 EMA at $1905 and is moving towards the $1950 level. In case gold continues its upside move, silver will have good chances to get above the $25 level.

Meanwhile, gold/silver ratio declined below the support at the 50 EMA at 78.55 and tested the 20 EMA level at 78.10. If gold/silver ratio manages to settle below the 20 EMA, it will gain downside momentum which will be bullish for silver.

Technical Analysis

Silver is currently trying to settle above the nearest resistance level at the 50 EMA at $24.55. RSI is in the moderate territory and there’s plenty of room to gain additional upside momentum in case the U.S. dollar continues to lose ground against a broad basket of currencies.

If silver manages to settle above $24.55, it will head towards the next resistance level at $25.85. The downside move which happened at the end of September was fast, and there are no major levels between $24.55 and $25.85.

In case silver gets above the resistance at $25.85, it will head towards the next resistance area at $26.20 – $26.30.

On the support side, the nearest support is located at $23.30, and there are no significant support levels between $23.30 and $24.55. In case silver moves below $23.30, it will head towards the next support at $22.90.

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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