Yahoo News Silver Price Daily Forecast – Silver Declines Below $24.00
Silver Video 30.09.20.
Silver Pulls Back After Yesterday’s Upside Move
Silver did not manage to settle above $24.00 as the U.S. dollar gained ground against a broad basket of currencies after chaotic U.S. presidential debate.
The U.S. Dollar Index managed to get back above the 94 level and is currently trying to get to the test of the nearest resistance level at 94.20. If the U.S. Dollar Index manages to settle above 94.20, silver will find itself under increased pressure.
Gold faced strong resistance at the $1900 level and did not develop additional upside momentum. If gold breaks above $1900, it could gain strong upside momentum so silver will have good chances to continue its upside move.
Gold/silver ratio received support at the 50 EMA at 78.15 and is moving towards the 80 level. If gold/silver ratio gets above the 80 level, silver will likely decline closer to the nearest significant support level at $23.30.
From a big picture point of view, silver will likely need additional weakness of the American currency to continue its rebound. Without support from weaker dollar, silver may fail to develop sufficient upside momentum.
Technical Analysis
Silver failed to continue its upside move and declined below $24.00. The nearest support for silver is located at $23.30.
If silver declines below this support level, it will gain additional downside momentum and head towards the next support level at $22.30.
In case silver manages to settle below the support level at $22.30, it will move towards the recent lows at $21.65.
On the upside, silver faced some resistance in the $24.30 – $24.40 area, and it will need to get above this resistance area to have a chance to continue its upside move.
While the resistance at $24.30 – $24.40 may present some problems for silver, the nearest significant resistance level is located at the 50 EMA at $24.75. If silver manages to settle above the 50 EMA, it will gain additional upside momentum and head towards the next resistance level at the 20 EMA at $25.10. A move above the 20 EMA will push silver closer to the resistance at $25.85.
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This article was originally posted on FX Empire
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