Silver Tests Support At $26.30
Silver is currently trying to settle below the support at $26.30 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index managed to settle above the resistance level at 91.50 and is trying to settle above the next resistance at 91.80. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 92 which will be bearish for silver and gold price today.
Meanwhile, gold declined below the $1800 level and made an attempt to settle below $1775. In case gold manages to settle below $1775, it will head towards $1750 which will be bearish for silver.
Gold/silver ratio is currently trying to settle above the resistance at the 50 EMA at 67.80. In case this attempt is successful, gold/silver ratio will gain additional upside momentum and head towards the resistance at 68.70 which will be bearish for silver.
Silver found itself under strong pressure due to stronger dollar, higher Treasury yields and higher gold/silver ratio. However, Treasury yields have pulled back from recent highs, so silver may have a chance to gain some upside momentum in case Treasury yields move lower.
Silver settled below the support at $26.65 and is trying to settle below the next support level at $26.30. RSI remains in the moderate territory despite the recent sell-off so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If silver manages to settle below $26.30, it will move towards the support level which is located at $25.80. A successful test of this level will open the way to the test of the support at $25.50.
On the upside, the previous support at $26.65 will serve as the first resistance level for silver. If silver manages to get back above this level, it will move towards the next resistance at $27.00. A move above the resistance at $27.00 will push silver towards the resistance at the 50 EMA at $27.15.
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This article was originally posted on FX Empire