Silver Video 22.06.20.
Silver Gains Upside Momentum
Silver continues its upside move and tries to get above $18.00 as the U.S. dollar is losing ground against a broad basket of currencies while gold attempts to get above $1750 per ounce.
The U.S. Dollar Index has recently tried to settle above the nearest resistance level at 97.5 but failed to gain upside momentum and pulled back. U.S. dollar weakness is bullish for silver and other precious metals as it makes them cheaper for buyers who have other currencies.
Gold is finally making a serious attempt to settle above the key resistance at $1750. While the equity market ignores virus worries, gold benefits from traders’ desire to hedge against a potential sell-off in the equity market if the second wave of coronavirus becomes a serious problem.
In case gold develops additional upside momentum, other precious metals will follow. Gold/silver ratio met significant resistance near the 20 EMA at 99.10 and declined below 98, which is another bullish factor for silver. I maintain my opinion that gold/silver ratio has a decent chance to return to pre-crisis levels below 90.
Silver has finally managed to settle above $17.50 and gained solid upside momentum. Currently, silver is trying to get above $18.00. In case this attempt is successful, silver will continue to move towards the next resistance level below $18.50, near highs seen in early June.
I’d note that RSI is at moderate levels so silver has plenty of room to develop additional upside momentum. A move above the nearest resistance level will open the way to the test of the major resistance at $19.00.
Silver has not been above $19.00 since September 2019 when it briefly went to $19.65 and quickly pulled back below $19.00. A move above this major resistance level could help silver develop significant upside momentum.
On the support side, the nearest support level for silver is located at the 20 EMA at $17.45. The 20 EMA level has been tested many times when silver was consolidating near the resistance at $17.50. In case silver falls below the 20 EMA, it will head towards the major support level at $17.00.
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