Silver Rallies As Dollar Moves Lower
Silver ETF Gains Ground While Gold Gets Back Above $1800
Silver is currently trying to settle above the resistance at $22.80 while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to get above $21.20.
The U.S. Dollar Index managed to settle below the support at 96.50 and is testing the next support level at 96.25. In case this test is successful, the U.S. Dollar Index will move towards the support at the 96 level which will be bullish for silver and gold price today.
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Gold settled back above the $1800 level and tested the resistance at the 50 EMA near $1810 while SPDR Gold Trust moved towards $168.50. In case gold gets above the 50 EMA, it will get to the test of the resistance at $1815 which will be bullish for silver.
Gold/silver ratio faced strong resistance near the 80 level and pulled back below the 79 level. If gold/silver ratio manages to settle below the nearest support level at 78.50, it will gain additional downside momentum and move towards the 50 EMA at 78.15 which will be bullish for silver.
Technical Analysis
Silver is currently testing the resistance level at $22.80. In case silver manages to settle above this level, it will move towards the next resistance which is located at $23.10.
A move above this level will lead to the test of the 50 EMA at $23.15. The 20 EMA is located in the same area, and it looks that silver may face material resistance in the $23.10 – $23.20 range. In case silver moves above this range, it will gain additional upside momentum and head towards the next resistance at $23.50.
On the support side, the nearest support level for silver is located at $22.60. If silver declines below this level, it will head towards the next support at $22.30. A successful test of this level will open the way to the test of the next support level at $22.10.
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