Silver Continues To Trade In The $27.50- $28.30 Range
Silver has recently made another attempt to settle below the key support level at $27.50 but failed to develop sufficient downside momentum and rebounded closer to the resistance at $28.00 while the U.S. dollar declined against a broad basket of currencies.
The U.S. Dollar Index made an attempt to settle above the 50 EMA at 90.60 but lost momentum and pulled back below the support at 90.50. The next material support level for the U.S. Dollar Index is located at 90.30. A move below this level will open the way to the test of the 20 EMA at 90.20 which will be bullish for silver and gold price today.
Gold settled below the 20 EMA at $1875 and tried to get to the test of the 50 EMA at $1840. Gold received material support near the 50 EMA and rebounded towards $1865, but the recent sell-off looks worrisome for gold and silver bulls.
Meanwhile, gold/silver ratio managed to get below the 67 level and is moving towards the support at 66.50 which is bullish for silver.
Silver failed to settle below the support at $27.50 and rebounded towards the resistance at $28.00. In case silver manages to settle above this level, it will head towards the next resistance which is located at the high of the current trading range at $28.30. A successful test of the resistance at $28.30 will push silver towards the next resistance at $28.90.
On the support side, silver needs to get below the 20 EMA at $27.70 to have a chance to get to another test of the major support level at $27.50. This support level has already been tested many times and proved its strength.
In case silver settles below the support at $27.50, it will move towards the next support at the 50 EMA at $27.15. A move below the 50 EMA will open the way to the test of the support at $27.00.
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