Silver Price Daily Forecast – Test Of Resistance At $24.40 – FX Empire

Silver Gains Ground On Weaker U.S. Dollar

Silver is testing the resistance at the 50 EMA at $24.40 as the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the 50 EMA at 93.60. If this attempt is successful, the U.S. Dollar Index will move towards the next support level at the 20 EMA at 93.45 which will be bullish for silver.

Gold managed to get back above the 50 EMA at $1900 and is trying to gain additional upside momentum. The next resistance level for gold is located at $1930. If gold gets to the test of this level, silver and other precious metals will get additional support.

Meanwhile, gold/silver ratio continues its attempts to settle below the support at the 50 EMA at 78.45. If gold/silver ratio manages to get below this level, it will gain downside momentum and head towards the recent lows at 76.50 which will be bullish for silver.

Most likely, silver and other precious metals will remain volatile this week as markets digest the results of U.S. presidential election. In addition, the U.S. Fed will announce its Interest Rate Decision on November 5. While the Fed is expected to keep the rate unchanged, its commentary may increase volatility in the markets.

Technical Analysis

Silver has managed to settle above $24.00 and is testing the nearest resistance level at the 50 EMA at $24.40. If silver gets above the 50 EMA, it will head towards the next resistance level at $24.60.

A move above the resistance at $24.60 will open the way to the next resistance at $25.00. In case silver manages to settle above $25.00, it will head towards October highs at $25.55 although it may also face some resistance at $25.30.

On the support side, the nearest support level is located at $23.90. This support level has been tested during today’s trading session and proved its strength. A move below $23.90 will push silver towards the next support level at $23.30. If silver manages to settle below the support at $23.30, it will move towards the next support level at $22.90.

For a look at all of today’s economic events, check out our economic calendar.

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