Silver Video 18.01.21.
Silver Tested Support At $24.00 But Quickly Rebounded
Silver is trying to settle above the resistance at $25.00 after an unsuccessful attempt to get below the support at $24.00 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index gained strong upside momentum and managed to settle above the resistance at 90.70. Currently, the U.S. Dollar Index is testing the next resistance level which is located at the 50 EMA at 90.95. If the U.S. Dollar Index gets above this level, it will head towards the resistance at 91.20 which will be bearish for silver and gold price today. Stronger dollar is a negative catalyst for silver and other precious metals as it makes them more expensive for buyers who have other currencies.
Meanwhile, gold is trying to get back to the $1850 level after an attempt to settle below the support at $1800. If gold manages to settle above $1850, it will move towards the resistance at $1865 which will be bullish for silver.
Gold/silver ratio has recently made an attempt to settle above the resistance at the 50 EMA at 74.30 but failed to gain sufficient upside momentum. If gold/silver ratio settles above the 50 EMA, it will move towards the resistance at 75.50 which will put additional pressure on silver.
Today, silver tested the support level at $24.00 but failed to develop additional downside momentum and rebounded closer to the $25 level.
The nearest significant resistance level for silver is located at the 50 EMA at $25.15. If silver manages to settle above this level, it will move towards the next resistance at $25.30. A successful test of this level will push silver towards the next resistance which is located near the 20 EMA at $25.55.
On the support side, silver will likely get some support near $24.70. A move below this level will open the way to the test of the support at $24.50. In case silver gets below this level, it will head towards the support at $24.25.
The recent trading action indicated that silver may move fast between these levels so traders should be ready to react quickly to any developments.
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