Silver Price Daily Forecast – Another Test Of Support At $25.00

Silver

Silver Remains Stuck Near The $25 Level

Silver is currently trying to settle back below the support at $25.00 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle below the nearest support level at 92.70 but failed to develop sufficient downside momentum and moved closer to 92.80. The nearest resistance level for the U.S. Dollar Index is located at 93, and a move towards this level will be bearish for silver and gold price today.

Gold failed to settle above the resistance at the 20 EMA at $1740 and pulled back below $1730. This is a worrisome development for precious metals bulls as the 20 EMA level has been tested many times in recent trading sessions, and gold failed to develop additional upside momentum. If gold moves towards the support at the $1700 level, silver will find itself under pressure.

Gold/silver ratio has managed to get above the 69 level and is trying to continue its upside move. Yesterday, gold/silver ratio grew to 70.70 but lost momentum and pulled back below 69. In case gold/silver ratio manages to get to the test of the psychologically important 70 level, silver will move lower.

Technical Analysis

Silver is currently trying to get out of the tight trading range between the support at $25.00 and the resistance at $25.20.

If silver manages to settle below the support at $25.00, it will gain downside momentum and head towards the next support at $24.70. A move below this support level will push silver towards the support at $24.50 which has been tested during yesterdays trading session and proved its strength.

In case silver gets below $24.50, it will continue its downside move and head towards the next support at $24.20.

On the upside, a move above the resistance at $25.20 will open the way to the test of the resistance at $25.55. A successful test of the resistance at $25.55 will push silver towards the next resistance at the 20 EMA at $25.85.