Silver Video 14.07.20.
Silver Attempts To Gain More Upside Momentum
Silver battles to stay above the key $19.00 level as the U.S. dollar is mixed against a broad basket of currencies while gold trades near the psychologically important $1800 level.
Yesterday, silver managed to get above the yearly highs at $19.00 and tried to gain more upside momentum. However, California’s decision to reimpose some virus containment measures put pressure on global markets and pushed silver back to $19.00.
Interestingly, fear of new lockdowns did not provide much support to the U.S. dollar which has served as a safe haven asset of last resort during the current crisis.
The U.S. Dollar Index stays near the 96.5 level and continues to trend down. Weaker U.S. dollar is bullish for silver and other precious metals as it makes them cheaper for investors who have other currencies.
Meanwhile, gold is consolidating near the $1800 level after the recent upside move. Unprecedented monetary stimulus from the world central banks as well as fears about the second wave of lockdowns remain the key catalysts for additional gold price upside.
Gold/silver ratio has settled below 95 after a rapid downside move in the recent trading sessions. In case gold/silver ratio returns to pre-pandemic levels below 90, silver will have more upside from current levels.
Currently, silver attempts to settle above the $19.00 level and continue the upside move. RSI has entered the overbought territory but it is not extremely overbought so there’s still plenty of room to build upside momentum.
If silver manages to gain more upside momentum, it will head towards the next resistance level at $19.50. A move above $19.50 will open the way to the next resistance at $20.00.
On the support side, silver is already enjoying some support at $19.00 which provides optimism to silver bulls. In case silver manages to settle below $19.00, it will head towards the next support level at $18.50.
The 20 EMA is located at $18.25 and is set to rise to higher levels so the support in the $18.50 area will likely be very significant.
Currently, silver continues its upside trend and has good chances to gain more momentum and get to multi-year highs.
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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