Silver Video 27.05.21.
Silver Pulled Back As Gold Declined Below The $1900 Level
Silver is currently trading in the range between the support at $27.50 and the resistance at $27.75 while the U.S. dollar is flat against a broad basket of currencies.
The U.S. Dollar Index continues to test the resistance at the 90 level. In case this test is successful, the U.S. Dollar Index will gain upside momentum and head towards the resistance at 90.30 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Gold did not manage to settle above the $1900 level and pulled back. The nearest support level for gold is located at $1885. If gold declines below this level, it will head towards the next support at $1865 which will be bearish for silver.
Gold/silver ratio has recently made an attempt to settle above the resistance at 68.70 but lost momentum and pulled back. The nearest material support level for gold/silver ratio is located at the 50 EMA at 67.85. If gold/silver ratio gets to the test of this level, silver will get more support.
Silver has recently made an attempt to settle below the support at $27.50 but failed to develop sufficient downside momentum and rebounded towards the resistance at $27.75.
In case silver manages to settle above this level, it will head towards the next resistance level which is located at $28.30. A move above the resistance at $28.30 will open the way to the test of the resistance which is located not far from May highs at $28.90.
On the support side, silver needs to stay below $27.75 to have another chance to test the support level at $27.50. This support level has already been tested many times and proved its strength. A move below the support at $27.50 will push silver towards the next support at the 20 EMA at $27.35.
If silver settles below the support at the 20 EMA, it will head towards the support at $27.00. A successful test of this support level will push silver towards the 50 EMA at $26.70.
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