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Silver Price Daily Forecast – Test Of Support At $24.60

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Silver Video 13.10.20.

Silver Remains Under Pressure As U.S. Dollar Index Is Trying To Rebound

Silver declined below $25.00 and is testing the nearest support level at the 50 EMA at $24.60 as the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the nearest resistance area at 93.20 – 93.25. If the U.S. Dollar Index manages to get above this level, it will gain additional upside momentum and head towards the 20 EMA at 93.50 which will be bearish for silver.

Gold is also testing its support at the 50 EMA at $1905. If gold settles below the 50 EMA, it will gain downside momentum and decline below $1900, putting pressure on silver and other precious metals.

Gold/silver ratio is currently testing the nearest resistance at the 20 EMA at  77.75. If gold/silver ratio moves above the 20 EMA, it will gain upside momentum which will be bearish for silver.

Technical Analysis

Silver did not manage to settle above the resistance level at $25.85 and quickly declined towards the 50 EMA at $24.60. The recent rebound of the U.S. dollar put significant pressure on silver.

In addition, there were no material levels between the 50 EMA at $24.60 and the next resistance at $25.85 so silver’s moves inside this range were very fast.

In case silver manages to settle below the 50 EMA at $24.60, it will gain additional downside momentum and head towards the next support level at $23.30.

There are no significant levels between the support at $23.30 and the 50 EMA at $24.60 so this move may be fast as well. In case silver gets below $23.30, it will decline closer to the next support level at $22.90.

On the upside, the nearest resistance level for silver is still located at $25.85. Yesterday, silver made an attempt to get to the test of this level but its upside move was stopped at $25.56.

If silver settles above the resistance at $25.85, it will head towards the next resistance area at $26.20 – $26.30.

From a big picture point of view, silver is still trending higher, but a move below the 50 EMA will put its upside momentum under question.

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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