Silver Video 23.02.21.
Silver Pulls Back After Yesterday’s Rally
Silver gained downside momentum and is trying to settle below the support level at $27.50 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index failed to settle below the support at the 90 level and rebounded closer to 90.15. The nearest resistance level for the U.S. Dollar Index is located at 90.30. If the U.S. Dollar Index settles above this level, it will head towards the next resistance at the 20 EMA at 90.50 which will be bearish for silver and gold price today.
Gold faced resistance at the 20 EMA at $1815 and pulled back. The nearest support level for gold is located at the $1800 level. In case gold declines below this level, it will head towards the next support at $1785 which will be bearish for silver and other precious metals.
Gold/silver ratio gained upside momentum and is currently trying to settle above the 65 level. If gold/silver ratio settles above 65, it will head towards the next resistance at 65.50 which will be bearish for silver.
Silver did not manage to settle above the resistance at $28.30 and pulled back below the support at $27.75. Currently, silver is trying to move below the next support level which is located at $27.50.
In case this attempt is successful, silver will head towards the next support level at $27.00. The 20 EMA is in the nearby, so silver will likely get significant support in this area.
A successful test of the support at $27.00 will open the way to the test of the next support level at $26.70.
On the upside, silver needs to get back above $27.75 to have a chance to develop upside momentum in the near term. If silver gets above $27.75, it will head towards the resistance at $28.30. This resistance level has already been tested several times in recent trading sessions and proved its strength. In case silver manages to settle above $28.30, it will head towards the next resistance level at $28.90.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire