Silver Price Daily Forecast – Support At $23.90 Stays Strong
Silver Is Mostly Flat Despite Weak Dollar
Silver continues its attempts to settle below the support level at $23.90 while U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index is currently trying to settle below the 20 EMA at 93.80. In case this attempt is successful, the U.S. Dollar Index will head towards the next support level at 93.50 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.
Meanwhile, gold received support near the 50 EMA at $1780 and is trying to get closer to the $1800 level. A move above this level will push gold towards recent highs near $1815 which will be bullish for silver.
Gold/silver ratio has recently managed to settle above the 74 level and made an attempt to settle above 74.50. In case gold/silver ratio manages to settle above this level, it will move towards the 75 level which will be bearish for silver.
Technical Analysis
Silver tested the support level at $23.90 but this test yielded no results, and silver moved back above the $24 level. The nearest resistance level for silver is located at $24.30.
In case silver gets back above the resistance at $24.30, it will head towards the next resistance level which is located at $24.50. A move above the resistance at $24.50 will open the way to the test of the next resistance level at $24.80.
On the support side, silver needs to settle below the support at $23.90 to have a chance to develop downside momentum in the near term. The next support level for silver is located at the 50 EMA at $23.60.
If silver declines below the 50 EMA, it will gain additional downside momentum and head towards the support level at $23.20. A successful test of the support at $23.20 will push silver towards the next support at $23.00.
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This article was originally posted on FX Empire
