Silver Rebounds After Strong Sell-Off
Silver is currently trying to settle above the resistance at $21.90 while the U.S. dollar is flat against a broad basket of currencies.
The U.S. Dollar Index failed to get below the support level at 94.20 and rebounded towards 94.40. In case the U.S. Dollar Index manages to settle above this level, it will gain additional upside momentum and move towards the resistance at 94.60 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Meanwhile, gold received support at $1720 and is moving towards the resistance at $1750. If gold manages to settle above this level, it will head towards the 20 EMA at $1765 which will be bullish for silver.
Gold/silver ratio faced resistance near 80.50 and pulled back below the 80 level. In case gold/silver ratio settles below the nearest support level at 79.40, it will move towards the 79 level which will be bullish for silver.
Silver failed to settle below the support at $21.65 and is trying to get above the resistance level at $21.90. In case this attempt is successful, silver will head towards the next resistance which is located at $22.10.
A move above the resistance at $22.10 will push silver towards the resistance at $22.30. If silver gets above this level, it will continue its rebound and head towards the resistance level at $22.60.
On the support side, silver needs to settle back below the support at $21.65 to have a chance to gain downside momentum in the near term. RSI has recently moved back into the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If silver declines below $21.65, it will move towards the support at $21.30. A successful test of this level will open the way to the test of the next support at $20.90.
For a look at all of today’s economic events, check out our economic calendar.