Silver Is Under Pressure
Silver is currently trying to settle below the support at $23.20 while the U.S. dollar is flat against a broad basket of currencies.
The U.S. Dollar Index faced resistance at 94.20 and pulled back. Currently, the U.S. Dollar Index is trying to settle below the support at the 94 level. In case this attempt is successful, the U.S. Dollar Index will move towards the 20 EMA at 93.85 which will be bullish for silver and gold price today.
Meanwhile, gold is trying to settle below the 20 EMA at $1770. If gold manages to settle below the 20 EMA, it will move towards the major support level at $1750 which will be bearish for silver.
It should be noted that the yield of 10-year Treasuries has recently managed to get above 1.60% which put some pressure on precious metals. The next resistance level is located at 1.64%. In case the yield of 10-year Treasuries gets to the test of this level, silver will find itself under more pressure.
Gold/silver ratio is testing the resistance at the 50 EMA at the 76 level. If this test is successful, it will gain additional upside momentum and move towards 76.50 which will be bearish for silver.
Silver faced strong resistance near $23.50 and pulled back towards the support at $23.20. In case silver settles below $23.20, it will head towards the next support level which is located at $22.80.
A successful test of the support at $22.80 will open the way to the test of the support at $22.60. If silver declines below this level, it will head towards the support at $22.30. A move below $22.30 will push silver towards the next support level at $22.10.
On the upside, silver needs to stay above $23.20 to have a chance to develop upside momentum in the near term. The next resistance level is located at $23.50. The 50 EMA is located in the nearby, so silver will face strong resistance in the $23.40 – $23.50 area. In case silver manages to get above $23.50, it will gain additional upside momentum and head towards the next resistance level at $23.90.
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