Silver Price Daily Forecast – Weak Dollar Pushed Silver To New Highs

Vladimir Zernov
·2 min read
1

Silver Video 18.05.21.

Silver Continues To Move Higher

Silver gained strong upside momentum and managed to get above the resistance at $28.30 while the U.S. dollar found itself under strong pressure against a broad basket of currencies.

The U.S. Dollar Index managed to get below the support at the 90 level and made an attempt to settle below the next support at 89.75. In case the U.S. Dollar Index declines below this level, it will head towards the next support at 89.50 which will be bullish for silver and gold price today.

Meanwhile, gold managed to get above the resistance at $1865 and is moving higher. It should be noted that gold faced resistance at $1875 back in January, and a move above this level will signal that gold is ready to gain additional upside momentum.

At the same time, RSI has just entered into the overbought territory, so the risks of a pullback are increasing. If gold continues its upside move, silver and other precious metals will get more support.

Gold/silver ratio declined below the 66 level but found support near 65.40. If gold/silver ratio settles below this level, it will move towards the support at 64.80 which will be bullish for silver.

Technical Analysis

Silver settled above the resistance at $28.30 and made an attempt to get to the test of the next resistance level at $28.90. RSI is close to the overbought territory, but there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

If silver manages to settle above the resistance at $28.90, it will head towards the next resistance level at $29.30. A successful test of this level will push silver towards the resistance at $29.85.

On the support side, a move below $28.30 will open the way to the test of the support at $27.75. In case silver declines below this level, it will head towards the support at $27.50. A move below $27.50 will open the way to the test of the next support level which is located at the 20 EMA at $27.00.

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This article was originally posted on FX Empire

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