Silver Video 29.06.20.
Silver Continues To Trade Above The 20 EMA At $17.55
Silver has firmly settled in the range between the support level at $17.50 and the resistance level at $18.00 and continues its attempts to get to higher levels.
The U.S. dollar is providing support to silver today as the U.S. Dollar Index is under pressure. A weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.
The U.S. Dollar Index has made several attempts to settle above the resistance at 97.5 but failed to get upside momentum which is a good development for silver bulls.
Meanwhile, gold is mostly flat but stays above the key $1750 level. The demand for gold remains high as traders want to protect themselves against a potential global market sell-off which may be caused by problems on the coronavirus front.
Gold/silver ratio stays near the 20 EMA at 99.35. Recently, gold/silver ratio tried to develop upside momentum above 100. A continuation of this move would have been bearish for silver, but gold/silver ratio returned back below 100.
It remains to be seen whether gold/silver ratio will be able to resume the downside move in the near term, but a potential return to pre-crisis levels below 90 remains an important part of the bullish thesis for silver.
The technical situation has not changed much since my previous article on silver was published. Silver continues to trade in a range between $17.50 and $18.00 while trying to get to higher levels.
If this happens, silver will likely get solid upside momentum and head towards the test of the next material resistance level below $18.50.
On the support side, a move below the 20 EMA could be a major problem for silver bulls as it will likely trigger many protective stops and lead to a fast sell-off.
In this scenario, silver could quickly test the 50 EMA level at $17.00. A move below the 50 EMA will be a major victory for silver bears as it will signal the beginning of a new downside trend.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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