Silver Is Losing Ground While Gold Remains Stuck Between 20 EMA And 50 EMA
Silver is currently trying to settle below the support level at $23.50 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index is stuck near the resistance level at 93.10. If the U.S. Dollar Index manages to settle above 93.10, it will gain upside momentum and move towards yearly highs near 93.40 which will be bearish for silver and gold price today. Strong dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Meanwhile, gold is trading in the range between the 20 EMA at $1785 and the 50 EMA near $1800. In case gold declines below the 20 EMA, it will get to the test of the support at $1775 which will be bearish for silver.
Gold/silver ratio has recently managed to get above the resistance at 75.65 and is trying to get above the 76 level. If gold/silver ratio gets above this level, it will gain additional upside momentum which will put more pressure on silver.
Silver settled below the support level at $23.80 and is testing the next support at $23.50. RSI is in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.
If silver manages to get below the support at $23.50, it will gain additional downside momentum and head towards the significant support level which is located at $23.20.
A successful test of the support at $23.20 will push silver towards the next support at $22.90. If silver settles below this level, it will move towards the support level at $22.60.
On the upside, the nearest resistance level for silver is located at $23.80. In case silver gets back above this level, it will head towards the resistance at $24.00. A move above $24.00 will open the way to the test of the resistance at $24.20.
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This article was originally posted on FX Empire