Silver Is Moving Higher As Gold/Silver Ratio Tests The Support At 74
Silver continues its attempts to settle above $24.00 while the U.S. dollar is losing some ground against a broad basket of currencies.
The U.S. Dollar Index is testing the support level at 93.75. In case this test is successful, the U.S. Dollar Index will move towards the recent lows at 93.50 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.
Meanwhile, gold settled above the resistance at $1775 and is moving towards the next resistance at $1800. If gold manages to get to the test of this level, silver will get more support.
Gold/silver ratio continues its attempts to settle below the support level at 74. A move below this level will provide gold/silver ratio with a chance to develop additional downside momentum which will be bullish for silver.
Silver has once again managed to get above the resistance at $23.90 and is trying to settle above $24. RSI remains in the moderate territory despite the strength of the recent upside move, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If silver manages to settle above $24, it will move towards the next resistance level which is located at $24.30. A successful test of the resistance at $24.30 will open the way to the test of the resistance at $24.50. If silver gets above $24.50, it will move towards the next resistance level at $24.80.
On the support side, silver needs to get back below $23.90 to have a chance to develop downside momentum in the near term. The next support level for silver is located near 50 EMA at $23.50. If silver declines below this level, it will head towards the next support level at $23.20. The 20 EMA is located in the nearby, so silver may get material support in the $23.10 – $23.20 area.
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This article was originally posted on FX Empire
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