Silver Price Daily Forecast – Silver Is Under Pressure Amid Broader Market Sell-Off
Silver Video 22.01.21.
Silver Tests Support At $25.00
Silver made an attempt to settle below the support level at $25.00 while the U.S. dollar gained some ground against a broad basket of currencies.
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The U.S. Dollar Index did not manage to get below the support at the 90 level and is currently trying to get to the test of the nearest resistance level which is located at the 20 EMA at 90.30. If the U.S. Dollar Index settles above the 20 EMA, it will move towards 90.50 which will be bearish for silver and gold price today.
Meanwhile, gold is trying to settle below the $1850 level. The next support level for gold is located at $1830. If gold declines below this level, it will move towards the $1800 level which will be bearish for silver and other precious metals.
Gold/silver ratio is testing the resistance at the 20 EMA at 72.80. A move above this level will push gold towards the 50 EMA at the 74 level which will put additional pressure on silver.
The current sell-off in silver is a part of a broader market sell-off , so silver will likely need an improvement in general market mood to have a chance to rebound from current levels.
Technical Analysis
Silver tested the support at $25.00 but failed to develop additional downside momentum and rebounded above the 50 EMA at $25.25. The next resistance level for silver is located at the 20 EMA at $25.60.
If silver manages to settle above this level, it will move towards the next resistance at $25.85. A move above this level will open the way to the test of the resistance at $26.30.
On the support side, silver needs to get back below the 50 EMA at $25.25 to have a chance to develop additional downside momentum. The next support level is located at $25.00. If silver gets below this level, it will head towards the support at $24.70. A successful test of the support at $24.70 will open the way to the test of the support level at $24.50.
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