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Silver Rallies On Weaker Dollar
Silver is currently trying to settle above the resistance at $23.80 while the U.S. dollar is under strong pressure against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get below the support level at 92.80 and is trying to settle below the next support level at the 20 EMA at 92.55. In case this attempt it successful, the U.S. Dollar Index will head towards the support at 92.40 which will be bullish for silver and gold price today.
Gold has managed to settle above the resistance at $1750 and is testing the next resistance level at $1775. In case gold manages to settle above this level, it will head towards the next resistance at $1800 which will be bullish for silver and other precious metals.
Gold/silver ratio failed to settle above the 75 level and pulled back towards 74.50. If gold/silver ratio manages to get below 74.50, it will move towards the 74 level which will be bullish for silver.
Technical Analysis
Silver gained strong upside momentum and managed to settle above the resistance level at $23.50. RSI has recently moved out of the oversold territory, and there is still plenty of room to gain additional upside momentum in case the right catalysts emerge.
Currently, silver is testing the resistance level at $23.80. A successful test of the resistance at $23.80 will push silver towards the next resistance level at $24.00. In case silver gets above this level, it will move towards the resistance at $24.20. A move above $24.20 will push silver towards the resistance at $24.50.
On the support side, the previous resistance level at $23.50 will serve as the first support level for silver. In case silver manages to settle back below this level, it will head towards the next support at $23.20. This support level has already been tested several times and proved its strength. A successful test of the support at $23.20 will push silver towards the support level at $22.90.
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This article was originally posted on FX Empire
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