Silver Video 15.02.21.
Silver Moves Higher At The Start Of The Week
Silver is currently trying to settle above the resistance at $27.50 while the U.S. dollar is mostly flat against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle below the nearest support level at 90.30 but failed to develop sufficient downside momentum and rebounded closer to 90.40.
If the U.S. Dollar Index manages to settle above the resistance at 90.50, it will move towards the next resistance at the 20 EMA at 90.60 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.
Unlike silver, gold is moving lower. Gold failed to settle above the nearest resistance level at $1830 and is heading towards the support at $1800. If gold gets to the test of the support at $1800, silver will likely find itself under pressure.
Meanwhile, gold/silver continues to move lower. Currently, gold/silver ratio is trying to settle below the 66 level. If this attempt is successful, gold/silver ratio will move towards the 65 level which will be bullish for silver.
Silver is currently testing the resistance level at $27.50. If this test is successful, it will have a chance to get to the test of the next resistance at $27.75.
If silver gets above $27.75, it will head towards the resistance at $28.30. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
A move above the resistance at $28.30 will open the way to the test of the next resistance at $28.90. It should be noted that there are big gaps between levels after the resistance at $27.75 so silver will have an opportunity to gain strong momentum if it gets above this level.
On the support side, the nearest support level for silver is located at $27.00. If silver declines below this level, it will head towards the next support at the 20 EMA at $26.75.
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