Silver is losing ground while gold remains stuck between the 20 EMA and 50 EMA
Silver it is currently trying to get below the support level at $ 23.50 while the US Dollar remains mostly flat against a wide basket of currencies.
The US Dollar Index is stuck near the resistance level at 93.10. If the US Dollar Index manages to get above 93.10, it will gain bullish momentum and move towards yearly highs near 93.40, which will be bearish for the price of silver and gold today. The strong dollar is bearish for precious metals, making them more expensive for buyers of other currencies.
In the meantime, gold it is trading in the range between the 20 EMA to $ 1785 and the 50 EMA near $ 1800. In case gold falls below the 20 EMA, it will hit the test of the support at $ 1775, which will be bearish for silver. .
The gold / silver ratio has recently managed to break through the resistance at 75.65 and is trying to break above the level 76. If the gold / silver ratio breaks above this level, it will gain additional bullish momentum that will put further pressure on silver.
Silver moved below the support level at $ 23.80 and is testing the next support at $ 23.50. The RSI is in moderate territory and there is plenty of room to gain momentum to the downside should the right catalysts emerge.
If silver manages to get below the support at $ 23.50, it will gain additional bearish momentum and head towards the significant support level 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 closest resistance level for silver is at $ 23.80. Should silver break above this level again, it will head towards the resistance at $ 24.00. A move above $ 24.00 will open the way to the resistance test at $ 24.20.
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This Article was originally published on FX Empire