Silver Price Daily Forecast – Silver Slides Amid Global Market Sell-Off – FX Empire

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Strong U.S. Dollar Puts Pressure On Silver

Silver declined below $24.00 as the U.S. dollar gained ground against a broad basket of currencies amid fears about the second wave of coronavirus in Europe.

The U.S. Dollar Index managed to settle above the resistance at the 20 EMA at 93.55 and is currently testing the next resistance at the 50 EMA at 93.75. In case the U.S. Dollar Index manages to get above the 50 EMA, it will gain additional upside momentum and move towards the 94 level which will be bearish for silver.

Gold is also under some pressure due to stronger dollar. Currently, gold is trying to settle below the $1900 level. However, gold’s losses are limited as it gets some support from its safe haven status.

Gold/silver ratio managed to get above the resistance at the 50 EMA at 78.45 and is located close to the 80 level. If gold/silver ratio moves above 80, it may develop additional momentum which will be bearish for silver.

At this point, fears about the second wave of the virus dominate the markets. If these fears continue to push the dollar higher, silver may find itself under significant pressure and test the support at $23.30.

Technical Analysis

Silver is currently trying to settle below the nearest support level at $23.90. In case this attempt is successful, silver will gain additional downside momentum and head towards the next support level at $23.30.

A move below $23.30 will open the way to the test of the next support level at October lows at $22.90. If silver gets below this support level, it will decline towards the support at $22.30.

On the upside, silver needs to stay above the support at $23.90 to have a chance to develop upside momentum. If silver settles above $23.90, it will head towards the nearest significant resistance level at the 50 EMA at $24.55.

Silver has clearly lost its previous upside momentum in recent trading sessions and settled below the 20 EMA and the 50 EMA. However, the situation may change quickly as key catalysts like the second wave of the virus, the next round of U.S. stimulus and Brexit will continue to boost volatility in the markets.

For a look at all of today’s economic events, check out our economic calendar.

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