Silver Price Daily Forecast – Silver Consolidates Near $27.00

Silver Is Mostly Flat Despite Weaker U.S. Dollar

Silver continues to trade near $27.00 as the U.S. dollar is losing ground against a broad basket of currencies while gold tries to settle above the 20 EMA near $1950.

The U.S. Dollar Index faced resistance at 93.50 and pulled back towards the 93 level as the appetite for riskier currencies increased amid widespread optimism on markets. Weaker dollar is a bullish catalyst for silver and other precious metals as it makes them cheaper for buyers who have other currencies.

Gold is trying to gain some upside momentum but stays near the 20 EMA despite the current weakness of the U.S. dollar. Meanwhile, gold/silver ratio has firmly settled near the 72 level.

Gold/silver ratio has finally stabilized after the major downside move that happened in July and will likely need additional catalysts to get out of the current tight range.

At this point, silver’s upside trend remains intact while volatility decreases. It looks like silver is trying to stabilize near current levels after the wild moves that happened in July and early August.

This is a healthy sign for silver bulls, especially in case silver manages to stay above the 20 EMA at $25.90.

Technical Analysis

Silver continues to trade in a range between the support at $26.20 and the resistance at $27.75. In case silver manages to settle below the support at $26.20, it will head to the test of the 20 EMA level at $25.90.

A move below the 20 EMA will signal that the current upside momentum has come to an end so I’d expect a lot of interest near this level.

If silver gets below the 20 EMA, it will likely gain additional downside momentum and head towards the next support level at $24.95.

On the upside, silver will need to get above the high end of the current trading range at $27.75 in order to continue its current upside trend. If this happens, silver will head towards the test of the next resistance level at $28.50. RSI is at moderate levels so there is plenty of room to gain more momentum in case the right catalysts emerge. #Silver##USDollarIndex#

Reprinted from Fxempire，the copyright all reserved by the original author.