Silver Gains Ground Despite Stronger Dollar
Silver is testing the resistance level at $24.50 while the U.S. dollar is moving higher against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the 20 EMA at 93.80 and is moving higher. The next resistance level for the U.S. Dollar Index is located at the 94 level. In case the U.S. Dollar Index settles above 94, it will head towards the next resistance at 94.20 which will be bearish for silver and gold price today.
Manwhile, gold managed to get back above the $1800 level and is trying to gain additional upside momentum. It looks that silver and gold get some support from safe-haven buying today. In case gold settles above the $1800 level, it will move towards the resistance at $1830 which will be bullish for silver.
Gold/silver ratio has recently made an attempt to settle above the resistance at the 74 level. In case gold/silver ratio settles above this level, it will gain upside momentum and move towards the next resistance at 74.50 which will be bearish for silver.
Silver continues its attempts to settle above the resistance level at $24.50. In case silver manages to settle above this level, it will move towards the next resistance level which is located at $24.80.
A successful test of the resistance at $24.80 will push silver towards the resistance level at $25.00. If silver gets above this level, it will move towards the resistance at $25.30.
On the support side, the nearest support level for silver is located at $24.30. If silver manages to settle back below this level, it will gain downside momentum and head towards the next support level at $23.90.
A successful test of the support at $23.90 will open the way to the test of the next support level which is located at the 50 EMA at $23.55. The 20 EMA is located near $23.45, so silver will likely receive strong support in the $23.45 – $23.55 area.
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This article was originally posted on FX Empire