Silver Gains Some Ground Despite Strong Dollar
Silver continues its attempts to settle above the resistance at $26.30 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has managed to get back above 92.40 and is currently trying to settle above 92.50. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance level at 92.80 which will be bearish for silver and gold price today. Strong dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Gold has recently made an attempt to settle above $1830 but failed to develop sufficient upside momentum and pulled back. The nearest support level for gold is located at the 50 EMA at $1815. If gold gets to the test of the 50 EMA, silver and other precious metals may find themselves under pressure.
Gold/silver ratio did not manage to settle above the resistance at 69.70. If gold/silver ratio gets to the test of the 69 level, silver will get more support.
Silver continues to test the major resistance level which is located at the 20 EMA at $26.30. Silver will have a good chance to develop solid upside momentum in case it manages to settle above $26.30. In this case, silver will move towards the next resistance at the 50 EMA at $26.55.
A successful test of the resistance at the 50 EMA at $26.55 will open the way to the test of the next resistance at $27.00. If silver settles above $27.00, it will move towards the resistance at $27.25.
On the support side, silver enjoys strong support near $25.80, and a move below this level will be a worrisome development for the bulls. If silver manages to settle below $25.80, it will head towards the support at $25.50. A successful test of this level will push silver towards the next support at $25.30.
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