Silver Video 21.10.20.
Silver Gains Ground As U.S. Dollar Continues To Move Lower
Silver gained strong upside momentum and continues its upside move as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index declined below the support at 92.80 and is trying to get to the test of the next support level at 92.50. The key driver for dollar’s downside move is the strong performance of the British pound, which is gaining ground amid signs that EU and UK will continue to work on the Brexit deal.
In case the U.S. Dollar Index settles below the support at 92.50, silver will get additional support. Weaker dollar is bullish for silver as it makes silver cheaper for buyers who have other currencies.
Meanwhile, gold managed to get above the 50 EMA at $1905 and is moving towards the next resistance level at $1930. If gold moves above $1930, it will gain upside momentum and head towards the $1950 level which will be bullish for silver and other precious metals.
Gold/silver ratio continues to lose ground and is declining towards the nearest support at 75.50. This is a bullish development for silver.
Silver is currently testing the nearest resistance level at $25.00. If the test of this level is successful, silver will gain additional upside momentum and head towards the next resistance at the recent highs at $25.55.
There are no material levels between $25.00 and $25.55 so this move may be fast in case the U.S. dollar continues to lose ground against a broad basket of currencies.
If silver moves above the resistance at $25.55, it will quickly get to the test of the next resistance level at $25.85.
On the support side, the nearest support level for silver is located at the 50 EMA at $24.55. If silver declines below the 20 EMA, it will gain downside momentum and head towards the next support level at $23.90.
A move below the support at $23.90 will signal that the current upside momentum has come to an end. In this case, silver will head towards the next support at $23.30.
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This article was originally posted on FX Empire
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