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Silver Video 03.06.21.
Silver Is Under Strong Pressure
Silver is currently trying to get to the test of the support at $27.00 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index gained strong upside momentum after the release of better-than-expect job market data. Currently, the U.S. Dollar Index managed to get above the 20 EMA at 90.20 and is trying to settle above the next resistance level at 90.30. If this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 90.50 which will be bearish for silver and gold price today.
Not surprisingly, gold also suffers from stronger dollar. Gold gained significant downside momentum and is testing the support level at the 20 EMA at $1870. If this test is successful, gold will head towards the $1850 level which will be bearish for silver.
Gold/silver ratio is currently trying to get to the test of the resistance at 68.70. If gold/silver ratio manages to settle above this level, it will move towards the 69 level which will be bearish for silver.
Technical Analysis
Silver gained strong downside momentum and is moving towards the support level which is located near the 50 EMA at $27.00. RSI remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.
If silver manages to settle below the 50 EMA, it will head towards the next support level at $26.65. A successful test of this level will open the way to the test of the next support at $26.30.
On the upside, silver needs to get back above the 20 EMA at $27.55 to have a chance to gain upside momentum in the near term. If silver settles above the 20 EMA, it will move towards the next resistance level at $27.75. In case silver manages to get above $27.75, it will find itself back in the trading range between $27.75 and the resistance level at $28.30.
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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