Silver Is Under Pressure
Silver has recently made an attempt to get to the test of the major support at $27.50 while the U.S. dollar remained flat against a broad basket of currencies.
The 50 EMA at 90.60 remains a key resistance level for the U.S. Dollar Index. The U.S. Dollar Index has already made several attempts to settle above this level in recent trading sessions but failed to develop sufficient upside momentum. If the U.S. Dollar Index gets above this level, it will head towards 90.90 which will be bearish for silver and gold price today.
Meanwhile, gold is trying to settle back above $1865. If this attempt is successful, gold will move towards the 20 EMA at $1875 which will be bullish for silver.
Gold/silver ratio made an attempt to settle above 67.50. In case gold/silver ratio manages to settle above this level, it will head towards the 20 EMA at 67.70 which will be bearish for silver.
Silver is currently moving towards the key support level at $27.50. Silver made many attempts to settle below this level in recent weeks, but this support remained strong.
In case silver manages to settle below $27.50, it will gain additional downside momentum and head towards the support at the 50 EMA at $27.20. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.
If silver settles below the 50 EMA at $27.20, it will head towards the next support at $27.00. A successful test of this level will push silver towards the support at $26.65.
On the upside, silver needs to settle above the resistance at $27.75 to have a chance to develop upside momentum in the near term. If silver gets above this level, it will move towards the next resistance which has recently emerged at $28.00. A move above the resistance at $28.00 will open the way to the test of the resistance at $28.30.
For a look at all of today’s economic events, check out our economic calendar.