Silver Price Daily Forecast – Test Of Resistance At $26.05

Weak Dollar And Lower Yields Provide Support To Silver

Silver is currently trying to settle above the 50 EMA at $26.05 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get below the 50 EMA at 91.90 and is trying to get below the next support level at 91.80. In case this attempt is successful, the U.S. Dollar Index will head towards the support level at 91.50 which will be bullish for silver and gold price today.

Meanwhile, gold is trying to settle above recent highs near $1830. If gold manages to settle above this level, it will move towards the $1850 level which will be bullish for silver.

Gold/silver ratio declined below the 20 EMA at 70.75 and is currently trying to settle below 70.50. If this attempt is successful, gold/silver ratio will move towards the 70 level which will be bullish for silver.

It should be noted that Treasury yields gained strong downside momentum today, so silver is supported by weak dollar and low yields. Currently, the yield of 10-year Treasuries is trying to settle below 1.15%. If this attempt is successful, it will move towards 1.10% which will provide additional support to gold and silver.

Technical Analysis

Silver is testing the resistance level at the 50 EMA at $26.05. If this test is successful, silver will gain additional upside momentum and move towards the next resistance level at $26.30.

A successful test of this level will open the way to the test of the next resistance at $26.65. If silver gets above $26.65, it will move towards the resistance at $27.00.

On the support side, the previous resistance at $25.80 will serve as the first support level for silver. In case silver declines below the support at $25.80, it will move towards the support at the 20 EMA at $25.60.

A move below the 20 EMA will lead to the test of the support at $25.50. If silver gets below this level, it will move towards the next support at $25.30.

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