Silver Video 13.08.20.
Silver Gains Ground As U.S. Dollar Continues To Decline
Silver managed to get above the resistance level at $26.20 and continues its rebound as the U.S. dollar is losing ground against a broad basket of currencies while gold/silver ratio declines.
The U.S. Dollar Index continues its downside move and is trying to get to the test of the 93 level. In case the U.S. Dollar Index declines below this support level, silver and other precious metals will get a boost since weaker dollar makes them more attractive for buyers who have other currencies.
Gold continues its rebound and is trying to settle above the 20 EMA at $1940. If this attempt is successful, gold will gain more upside momentum which would be bullish for silver.
Meanwhile, gold/silver ratio has managed to settle below 75 and looks ready to continue its downside move. In case the current trend is maintained, gold/silver ratio has good chances to get to the test of the recent lows at 69.50.
It is already safe to say that silver managed to quickly rebound after a major-sell-off since many traders who have missed the original rally waited for such an opportunity and stepped in to buy silver.
Silver quickly settled above the 20 EMA at $24.65 and gained more upside momentum. RSI has declined to moderate territory after the major sell-off so there is plenty of room to gain more momentum in case the right catalysts emerge.
The nearest resistance level for silver is located at $27.00. This is not a major level so silver has good chances to settle above it in case it gets to the test of this resistance level. In this case, silver will continue its rebound and head towards $28.00.
On the support side, the previous resistance level at $26.20 will likely serve as the first support level for silver. If silver manages to settle below this level, it will head towards the next support at the 20 EMA at $24.65.
Both the initial rally and the subsequent sell-off were fast so there are huge gaps between levels. In this situation, silver will continue to experience outsized volatility in the upcoming trading sessions.
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This article was originally posted on FX Empire