Silver Price Daily Forecast – Silver Remains Under Pressure After Yesterday’s Sell-Off

·2 min read

Silver Video 13.05.21.

Silver Tests Support At $27.00

Silver is currently trying to settle below the support at $27.00 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index faced resistance at 90.90 and pulled back towards the support at 90.70. In case the U.S. Dollar Index manages to settle below this level, it will move towards the support at 90.50 which will be bullish for silver and gold price today.

Treasury yields have pulled back a bit, but markets remain worried about inflation. Strong dollar and higher yields served as bearish catalysts for precious metals during yesterday’s trading session, and it looks that traders remain worried about higher yields today, although gold is trying to rebound after yesterday’s sell-off.

Gold found support near $1810 and is trying to get above the nearest resistance level at $1820. If this attempt is successful, gold will move towards the $1850 level which will be bullish for silver.

Gold/silver ratio is testing the resistance at the 20 EMA at 67.50. In case gold/silver ratio manages to settle above this level, it will move towards the 50 EMA at 68 which will be bearish for silver.

Technical Analysis

Silver is currently testing the support at $27.00. If this test is successful, silver will move towards the next support level which is located near the 20 EMA at $26.65.

A move below this level will push silver towards the support at $26.30. The 50 EMA is in the nearby, at $26.20, so silver will likely get material support in the $26.20 – $26.30 area. If silver declines below the 50 EMA, it will likely gain additional downside momentum and head towards the next support level at $25.85.

On the upside, silver needs to settle back above $27.00 to have a chance to develop upside momentum in the near term. The next resistance level is located at $27.50.

If silver gets above this level, it will move towards the resistance at $27.75. A move above $27.75 will open the way to the test of the resistance at $28.30.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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