Silver Moves Higher As Gold/Silver Ratio Declines
Silver is currently trying to settle above the resistance at $28.30 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index managed to get above the resistance at the 20 EMA at 90.20 and is trying to get to the test of the next resistance level at 90.50. The 50 EMA is located at 90.60, so the U.S. Dollar Index will likely face material resistance in the 90.50 – 90.60 area. In case the U.S. Dollar Index gets above the 50 EMA, it will gain additional upside momentum which will be bearish for silver and gold price today.
Interestingly, gold is under pressure today after another unsuccessful attempt to settle above the resistance at $1900. The nearest support level for gold is located at the 20 EMA at $1880. In case gold manages to settle below this level, it will move towards the support at $1865 which will be bearish for silver.
Gold/silver ratio is currently trying to settle below the 67 level. If this attempt is successful, gold/silver ratio will head towards the support at 66.50 which will be bullish for silver.
Silver managed to get above the resistance at $28.00 and is trying to settle above the next resistance level which is located at $28.30. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum.
If silver gets above $28.30, it will head towards the next resistance level at $28.90. A move above this level will push silver towards the resistance which is located at $29.30.
On the support side, the previous resistance at $28.00 will likely serve as the first support level for silver. If silver declines below this level, it will head towards the next support near the 20 EMA at $27.75. A successful test of the support at the 20 EMA at $27.75 will open the way to the test of the major support level which is located at $27.50.
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This article was originally posted on FX Empire
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