Silver Price Daily Forecast – Another Attempt To Settle Below $27.50 Yields No Results

Silver

Strong Dollar Puts Pressure On Silver

Silver has recently made another attempt to settle below the support at $27.50 while the U.S. dollar moved higher against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance at the 20 EMA at 90.30. In case this attempt is successful, the U.S. Dollar Index will head towards the resistance at 90.50 which will be bearish for silver and gold price today.

Gold continues its attempts to settle above the resistance level at $1900 which has already been tested several times in recent trading sessions and proved its strength. Id note that stronger dollar failed to put any material pressure on gold today, and it looks that gold traders remain bullish. If gold settles above the $1900 level, it will gain additional upside momentum which will be bullish for silver and other precious metals.

Meanwhile, gold/silver ratio made an attempt to settle above the resistance at 68.70 but failed to develop sufficient upside momentum and pulled back towards 68.40. In case gold/silver ratio manages to settle above the resistance at 68.70, it will head towards the next resistance at the 69 level which will be bearish for silver.

Technical Analysis

Silver has once again received support near $27.50 and rebounded closer to $27.75. The 20 EMA is located at $27.40 so silver will likely continue to get strong support in the $27.40 – $27.50 area.

If silver manages to settle below the support at the 20 EMA, it will gain additional downside momentum and head towards the next support level which is located at $27.00. There are no important levels between the support at $27.00 and the 20 EMA at $27.40 so this move may be fast.

In case silver declines below the support at $27.00, it will continue its downside move and head towards the support at the 50 EMA at $26.75.

On the upside, silver needs to settle back above $27.75 to have a chance to develop upside momentum in the near term. The next resistance level for silver is located at $28.30. If silver manages to settle above this level, it will head towards the resistance at $28.90.