Silver Price Daily Forecast – Support At $25.00 Stays Strong

Silver Rebounds After Yesterdays Sell-Off

Silver is currently trying to settle above the resistance at $25.55 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index found itself under pressure after reports suggested that a trade deal between EU and UK was imminent. According to sources, the deal could be agreed on Wednesday evening.

These reports provided major support to GBP/USD while the U.S. dollar also started to decline against other currencies. Typically, weaker dollar is bullish for silver and other precious metals as it makes them cheaper for buyers who have other currencies.

Brexit news clearly provided material support to silver and gold price today. Gold managed to get back above the 50 EMA at $1865 and is moving towards the $1900 level. If gold gets to the test of the $1900 level, silver will get additional support.

Gold/silver ratio failed to settle above the 74 level and pulled back closer to the 73 level. It looks like gold/silver ratio is ready to consolidate after recent volatility, but it remains to be seen whether this consolidation will take place during holiday-thinned trading.

Today, silver made an attempt to get below the support at $25.00 but quickly rebounded. Currently, is trying to settle above the nearest resistance level at $25.55. If this attempt is successful, silver will get to the test of the resistance at $25.85. A move above this level will push silver towards the resistance at $26.30.

On the support side, a move below $25.55 will open the way to the test of the support at $25.30. If silver declines below this level, it will head towards the major support level at $25.00.

This support level has already been tested many times in recent trading sessions and proved its strength. Most likely, silver will gain significant downside momentum in case it settles below the support at $25.00. In this scenario, it will quickly get to the test of the next support level which is located at the 20 EMA at $24.80.