Silver Price Daily Forecast – Silver Is Losing Ground Ahead Of The Weekend

Silver Is Under Pressure As Gold/Silver Ratio Moves Higher

Silver managed to get below the 50 EMA at $25.20 and is trying to settle below the support at $25.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest resistance level at 90.50. This resistance level has already been tested many times in recent trading sessions and proved its strength. If the U.S. Dollar Index manages to settle above 90.50, it will gain upside momentum and get to the test of the next resistance level at 90.70 which will be bearish for silver.

Meanwhile, gold continues to trade near the $1850 level. Gold has already made several attempts to settle above this level in recent trading sessions but these attempts yielded no results. If gold manages to settle below the nearest support level at $1830, silver will find itself under pressure.

Gold/silver ratio managed to get above the 20 EMA at 72.80 and gained strong upside momentum. Currently, gold/silver ratio is testing the resistance at the 50 EMA at 74.30. In case gold/silver ratio gets above the 50 EMA, it will gain additional upside momentum which will be bearish for silver.

Technical Analysis

Silver declined below the 50 EMA at $25.20 and is currently testing the support level at $25.00. RSI is in the moderate territory so there is plenty of room to gain additional downside momentum.

If silver declines below the support at $25.00, it will move towards the next support level at $24.70. A successful test of this level will push silver towards the support at $24.50. In case silver settles below the support at $24.50, it will head towards the next support level which is located at $24.25.

On the upside, the 50 EMA at $25.20 will likely serve as the first resistance level for silver. The next resistance is located at $25.30. If silver gets above the resistance at $25.30, it will head towards the next resistance level at $25.55. This level has been tested many times in recent trading sessions so silver will likely need additional upside catalysts to settle above $25.55.