Silver Price Daily Forecast – Test Of Support At $23.30

Silver’s Sell-Off Continues

Silver is currently trying to settle below $23.50 as the U.S. dollar continues to gain ground against a broad basket of currencies while gold/silver ratio attempts to get above the 80 level.

The U.S. Dollar Index has settled above the 94 level and is trying to move above the minor resistance level at 94.20. If this attempt is successful, the U.S. Dollar Index will gain more upside momentum and head towards the significant resistance level at 94.65.

Strong U.S. dollar is bearish for silver as it makes it more expensive for buyers who have other currencies so the above-mentioned scenario will put more pressure on silver.

Meanwhile, gold has managed to get below $1900 and is heading lower. The nearest significant support level for gold is located at August lows at $1863. If gold moves towards this level, silver will also move lower.

Gold/silver ratio gained serious upside momentum and is trying to settle above the 80 level. The previous downside move in gold/silver ratio was fast so there are major gaps between levels. The nearest significant resistance for gold/silver ratio is located near the 84 level. A move towards this level will put additional pressure on silver.

Technical Analysis

Silver is currently trying to move below the nearest support level at $23.30. If this attempt is successful, silver will head towards the next support level at $22.90.

A move below the support at $22.90 will open the way to the test of the next support level at $22.30, at the low of the highly volatile trading day on July 28, 2020.

I’d note that RSI is about to enter the oversold territory so the risks of a rebound are increasing. However, RSI is still far from extremely oversold territory, and there is enough room to gain more downside momentum in case the U.S. dollar moves higher against a broad basket of currencies.

On the upside, the nearest resistance for silver is located at $23.70. If silver manages to settle above this level, it will try to get to the test of the significant resistance level at the 50 EMA at $25.05, although it may also face resistance at lower levels along the way. #Silver##XAG/USD#

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