Silver Video 07.07.20.
Silver Stays Above $18.00 But Fails To Get Additional Upside Momentum
Silver did not manage to breach the resistance below $18.50 but stays above $18.00 as gold/silver ratio rebounded while the U.S. dollar gained some ground against a broad basket of currencies.
Earlier, the U.S. Dollar Index tried to settle above the 97 level but this attempt was not successful. In case the U.S. dollar continues its previous downside move, silver and other precious metals will get additional support as weaker dollar makes them less expensive for investors who have other currencies.
Gold is losing some ground but stays near highs, and its upside trend remains intact. The stock market is once again worried about the virus so gold has chances to get back to the upside mode later in the trading session.
Gold/silver ratio rebounded above 98 but stays below the 20 EMA at 98.85. At this point, gold/silver ratio remains glued to the 20 EMA, and all attempts to develop momentum were short-lived.
Silver has recently made another attempt to get above the nearest resistance level below $18.50 but this attempt was not successful. Silver has already made three attempts to get above this level during the recent trading sessions so this resistance level is strong.
Most likely, silver will need additional upside in gold or a decline of gold/silver ratio to get above $18.50. If this happens, silver will likely gain significant upside momentum and head towards the major resistance level at the yearly highs at $19.00.
In my opinion, silver will have good chances to get above $19.00 if it gets to the test of this level as precious metals are supported by low interest rates and rampant money printing from the world central banks.
On the support side, the first support level for silver is located at the 20 EMA at $17.80. If silver gets below this level, it will head towards the major support level at $17.50.
The support at $17.50 has been tested many times and proved its strength, and a move below this support level will signal a change of the short-term trend.
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This article was originally posted on FX Empire
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