Silver Price Daily Forecast – Another Test Of Support At $22.30
Silver ETF Is Under Pressure Ahead Of The Weekend
Silver is currently trying to settle below the support level at $22.30 while U.S. dollar is moving higher against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.70.
The U.S. Dollar Index found itself under pressure after the release of Non Farm Payrolls report. However, it failed to settle below the 96 level and rebounded towards the resistance at 96.25. In case the U.S. Dollar Index settles above this level, it will move towards the next resistance at 96.50 which will be bearish for silver and gold price today. Strong dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
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Meanwhile, gold did not manage to settle back above $1775 and pulled back while SPDR Gold Trust is trying to get below the $165.50 level. It looks that gold has a good chance to settle in the new trading range between the support at $1750 and the resistance at $1775. In case gold moves towards the low end of this range, silver will find itself under more pressure.
Gold/silver ratio received support near the 79 level and is moving higher. The nearest significant resistance level is located at the recent highs near the 80 level. In case gold/silver ratio manages to settle above 80, it will gain additional upside momentum which will be bearish for silver.
Technical Analysis
Silver continues its attempts to get below the support level at $22.30. If silver manages to settle below this level, it will move towards the next support at $22.10.
A successful test of the support at $22.10 will push silver towards the support at $21.90. If silver declines below this level, it will head towards the next support at $21.50.
On the upside, the nearest resistance level for silver is located at $22.60. In case silver manages to settle above this level, it will move towards the next resistance level at $22.90. A move above this level will open the way to the test of the resistance at $23.20.
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