Silver Stays In The Previous Trading Range
Silver is currently trying to get back above $27.75 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index is testing the nearest resistance level at the 50 EMA at 90.60. If this test is successful, the U.S. Dollar Index will gain additional upside momentum which will be bearish for silver and gold price today. However, it remains to be seen whether markets are ready for any moves ahead of the Fed Interest Rate Decision.
Gold has recently made an attempt to get below $1850 but failed to develop sufficient downside momentum and moved closer to $1865. The nearest significant resistance level for gold is located at the 20 EMA at $1875. In case gold gets to the test of this level, silver will get more support.
Gold/silver ratio has managed to settle below the 67 level and is trying to get to the test of the support at 66.50. A move below 66.50 will be bullish for silver.
Silver continues to trade in the range between the support at $27.50 and the resistance at $28.30, and it looks that it will need additional catalysts to get out of this range.
RSI is in the moderate territory and there is plenty of room to gain momentum, but silver failed to get any momentum in recent weeks.
Currently, silver is trying to get back above $27.75. If this attempt is successful, it will get to the test of the next resistance level which is located at $28.00. A move above this level will push silver towards the resistance at $28.30.
On the support side, a move below the key support level at $27.50 will open the way to the test of the next support which is located at the 50 EMA at $27.20. In case silver manages to get below the 50 EMA, it will head towards the support at $27.00. A move below this level will push silver towards the support at $26.65.
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