Silver Tests Support At $25.85
Silver faced resistance at $26.10 and pulled back while the U.S. dollar made an attempt to rebound against a broad basket of currencies.
The U.S. Dollar Index is currently testing the nearest resistance level at 90. At this point, the U.S. Dollar Index failed to gain significant upside momentum, but the minor rebound of the American currency managed to put some pressure on silver and gold price today. If the U.S. Dollar Index settles above the resistance at 90, it will get to the test of the next resistance at 90.15 which will be bearish for silver.
Gold did not manage to get to the test of the $1900 level but continues to trade above the nearest support level at the 50 EMA at $1865. If gold settles above $1900, it will gain additional upside momentum which will be bullish for silver and other precious metals.
Gold/silver ratio found support near 72.50 and is trying to rebound after recent sell-off. The nearest material resistance level for gold/silver ratio is located at 73.50. If gold/silver ratio gets to the test of this level, silver may find itself under additional pressure.
Silver did not manage to settle above $26.00 and pulled back. RSI is in the moderate territory so there is plenty of room to gain additional upside momentum. The nearest material resistance level for silver is still located at $26.30.
If silver gets above this level, it will continue its upside move and head towards the resistance at $27.00. There are no important levels between $26.30 and $27.00 so this move may be fast. If silver settles above $27.00, it will move towards the resistance at $27.50.
On the support side, the nearest support level for silver is located at $25.85, and silver is currently testing this level. If silver settles below $25.85, it will move towards the next support level at $25.55. A successful test of the support at $25.55 will open the way to the next support level at $25.30. A move below the support at $25.30 will push silver towards the support at $25.00.
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