Silver Video 16.10.20.
Silver Continues Its Attempts to Gain Additional Upside Momentum
Silver is testing the nearest resistance level at the 50 EMA at $24.55 as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index failed to settle above the resistance at its 50 EMA at 93.75 and pulled back. The nearest support for the U.S. Dollar Index is located at the 20 EMA at 93.55.
If the U.S. Dollar Index moves below this support level, it will gain additional downside momentum which will be bullish for silver. A weaker dollar is a positive catalyst for silver as it makes it cheaper for buyers who have other currencies.
Meanwhile, gold is roughly flat. Gold is testing its 50 EMA level at $1905 but has so far failed to develop material upside momentum. In case gold moves towards the resistance at the recent highs at $1930, silver and other precious metals will get additional support.
Gold/silver ratio is stuck between the support at the 20 EMA at 77.95 and the 50 EMA at 78.40. In case gold/silver ratio moves below the 20 EMA, it will gain additional downside momentum and head towards October lows near 75.50. This scenario will be bullish for silver.
Silver is trying to settle above the nearest resistance level at the 50 EMA at $24.55. If this attempt is successful, silver will gain additional upside momentum and head towards the next resistance level at the recent highs at $25.55.
There are no material levels between $24.55 and $25.55 so this move may be fast. A successful test of the resistance at $25.55 will open the way 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. Yesterday, silver made an attempt to settle below this level, but quickly rebounded back above the $24 level.
If silver manages to settle below the support at $23.90, it will gain additional downside momentum and head towards the next support level at $23.30.
From a big picture point of view, silver’s upside trend remains intact. However, silver risks losing its general upside momentum if it fails to get above the 50 EMA.
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:
- U.S. Stocks Set To Open Higher As U.S. Approves Remdesivir For Use Against COVID-19
- American Express Posts Lower-Than-Expected Earnings For Q3 as COVID-19 Slowdown Bites
- EUR/USD Daily Forecast – Support At 1.1780 In Sight
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.