Silver Price Daily Forecast – Test Of Support At $22.90
Silver Video 29.10.20.
Silver Continues To Move Lower
Silver is trying to settle below $23.00 as the U.S. dollar continues to gain ground against a broad basket of currencies amid worries about the second wave of lockdowns in Europe.
The U.S. Dollar Index has managed to settle above the 50 EMA at 93.55 and is moving towards the 94 level. If the U.S. Dollar Index manages to settle above 94, silver will find itself under additional pressure.
Gold made an attempt to get to the test of the nearest support at $1850 but failed to gain sufficient downside momentum and settled closer to $1870. If gold declines below $1850, it will head towards the next support level at $1820 which will be bearish for silver and other precious metals.
Meanwhile, gold/silver ratio has managed to settle above the 80 level and tried to get above the resistance at 81.50. In case gold/silver ratio settles above 81.50, it will gain additional upside momentum which will be bearish for silver.
Technical Analysis
Silver has managed to get below the support at $23.30 and made an attempt to settle below the next support at $22.90 but rebounded back above $23.00.
If silver settles below $22.90, it will continue its downside move and head towards the next material support level at $22.30. Despite the recent sell-off, RSI remains in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.
A successful test of the support at $22.30 will open the way to the test of the next support level at September lows at $21.65. If silver declines below September lows, it will gain serious downside momentum and move towards the $20 level.
On the upside, the previous support at $23.30 will likely serve as the first resistance level for silver. A move above this level will open the way to the test of the next resistance at $23.90.
If silver manages to settle above the resistance at $23.90, it will move towards the next resistance at the 20 EMA at $24.30. The 50 EMA is in the nearby so this resistance level is set to be a strong obstacle on the way up for silver.
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This article was originally posted on FX Empire
