Silver Moves Lower As U.S. Dollar Stays Strong
Silver is currently trying to settle below the support at $24.00 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the 20 EMA at 92.60 and is moving towards the next resistance level which is located at 92.80. In case the U.S. Dollar Index settles above this level, it will head towards the next resistance at 93.10 which will be bearish for silver and gold price today.
Meanwhile, gold made an attempt to get back above the $1800 level but lost momentum and pulled back. The nearest support level for gold is located at $1775. If gold manages to settle below this level, it will gain additional downside momentum and head towards the next support at $1750 which will be bearish for silver and other precious metals.
Gold/silver ratio managed to settle back above the 74 level and is trying to get to the test of the 20 EMA at 74.60. If gold/silver ratio settles above the 20 EMA, it will move towards the 75 level which will put pressure on silver.
Silver settled below the support at $24.20 and is trying to settle below the next support level at $24.00. If silver manages to settle below this level, it will head towards the next support at $23.80.
A move below $23.80 will push silver towards the support level at $23.50. In case silver declines below the support at $23.50, it will continue its downside move and head towards the next support at $23.20.
On the upside, the previous support level at $24.20 will serve as the first resistance level for silver. In case silver manages to settle back above this level, it will gain upside momentum and head towards the next resistance at $24.50. A successful test of the resistance at $24.50 will open the way to the test of the resistance level which is located at the 50 EMA at $24.70.
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This article was originally posted on FX Empire
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