Silver Video 07.09.20.
Silver Is Little Changed On Labor Day Holiday In U.S.
Silver continues to trade near the 20 EMA at $26.70 as the U.S. dollar remains mostly flat against a broad basket of currencies.
U.S. Dollar Index is once again trying to settle above the key 93 level. Today, the U.S. financial markets are closed due to Labor Day holiday, so trading dynamics of the American currency may be muted.
However, if the U.S. Dollar Index manages to gain upside momentum above the 93 level, silver may find itself under significant pressure.
Meanwhile, gold remains below the 20 EMA at $1945. In the recent trading sessions, the 20 EMA served as a significant resistance level for gold. In case gold fails to get above the 20 EMA in the upcoming trading sessions, it will likely gain more downside momentum which will be bearish for silver.
Gold/silver ratio continues to trade in a range between 71 and 73. Gold/silver ratio has been in this range since mid-August and made a single attempt to move out of the range when it tested the support at 69.50. If gold/silver ratio continues its previous downside trend, silver will have good chances to test the nearest resistance level at $27.75.
Silver is currently trying to find support near the key 20 EMA level. In case silver manages to stay above the 20 EMA, it will gain more upside momentum and head towards the test of the next resistance level at $27.75.
Silver’s RSI is in the moderate territory so there is plenty of room to gain more momentum in case the right catalysts emerge.
If silver moves above the resistance at $27.75, it will head towards the next resistance at $28.50.
On the support side, a move below the 20 EMA will be very problematic for silver bulls at it will indicate that silver lost its upside momentum. The next support level for silver is located at $26.20.
If silver manages to settle below the support at $26.20, it will gain more downside momentum and decline towards the next support level at $24.95.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver Price Daily Forecast – Silver Stays Near The 20 EMA
- Weekly Recap: Bitcoin and Ethereum Incur Significant Losses
- EUR/USD Price Forecast – Euro Pulls Back Slightly
- Expectations Running High Ahead Of Peloton Earnings
- Silver Price Forecast – Silver Gapped Higher to Kick Off the Week
- Gold Price Forecast – Gold Markets Quiet on Labor Day