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Silver Price Daily Forecast – Silver Tries To Gain More Ground Ahead Of The Weekend

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Silver Video 11.09.20.

Silver Tries To Stay Above The 20 EMA

Silver made an attempt to settle below the 20 EMA at $26.75 but managed to stay above this key support level as the U.S. dollar remained under some pressure against a broad basket of currencies.

The U.S. Dollar Index has managed to stay above its 20 EMA at 93.10 but stays well below the nearest resistance level at 93.50. The U.S. dollar may get some additional support from strong U.S. inflation numbers since both Core Inflation Rate and Inflation Rate  for August were higher than analyst expectations.

If the U.S. Dollar Index continues its rebound, silver will likely dip below the 20 EMA and gain more downside momentum.

Meanwhile, gold has also managed to stay above its 20 EMA at $1945 and maintains chances to gain more momentum and get to the test of the psychologically important $2000 level. If this happens, silver will get a boost.

Gold/silver ratio is still stuck in a rather tight range between 71 and 73. Gold/silver ratio’s 20 EMA is at 72.85, and a move above this level will be bearish for silver.

Technical Analysis

Silver continues to trade close to the $27 level and will likely remain sensitive to the trading dynamics of the American currency.

If silver stays above the 20 EMA, it will have a good chance to develop more upside momentum and get to the test of the next resistance level at $27.75. Yesterday, silver tried to move towards this level but its uspide move was stopped near $27.50 by the sudden rebound of the U.S. dollar.

In case silver manages to settle above the resistance at $27.75, it will gain more upside momentum and head towards the test of the next resistance level at $28.50.

A move above $28.50 will provide silver with a chance to test the next resistance at $28.90.

On the support side, the 20 EMA remains the nearest support level for silver. If silver manages to get below this level, it will gain downside momentum and head towards the test of the next support level at $25.85.

If silver moves below the support at $25.85, it will head towards the next support level at $24.95.

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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