Silver Is Under Pressure Ahead Of The Weekend
Silver has recently made an attempt to settle below the support at $22.10 while the U.S. dollar gained ground against a broad basket of currencies.
The U.S. Dollar Index managed to gain significant upside momentum and moved to the resistance level at 93.40. Treasury yields managed to get to multi-week highs which was bullish for the U.S. dollar and bearish for precious metals. In case the U.S. Dollar Index manages to settle above the resistance at 93.40, it will move towards the next resistance level at 93.75 which will be bearish for silver and gold price today.
Meanwhile, gold continues its attempts to settle below the support level at $1750. It looks that gold gets some support from safe-haven buying, but it remains to be seen whether it will be sufficient enough to push gold back above $1750. In case gold finally manages to settle below the support at $1750, it will head towards the next support level at $1720 which will be bearish for silver.
Gold/silver ratio received strong support near the 77 level and rebounded above the 78 level. In case gold/silver ratio gets to the test of the 79 level, silver will find itself under more pressure.
Silver has recently tried to settle below the support at $22.10 but failed to develop sufficient downside momentum and rebounded towards $22.30.
In case silver finally manages to settle below $22.10, it will head towards the next support level which is located at $21.90. A move below this level will push silver towards the support at $21.65.
On the upside, silver needs to settle back above $22.30 to have a chance to gain upside momentum in the near term. The next resistance level is located at $22.60.
If silver gets above $22.60, it will move towards the resistance at $22.90. A successful test of the resistance at $22.90 will open the way to the test of the next resistance level which is located at $23.20.
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This article was originally posted on FX Empire