Silver Continues Its Upside Move
Silver is currently trying to settle above October highs at $25.55 as the U.S. dollar continues to lose ground against a broad basket of currencies.
The U.S. Dollar Index has managed to get below the support at 92.50 and is moving towards the next support level at 92.10. If the U.S. Dollar Index gets to the test of this support level, silver will have good chances to move higher.
Meanwhile, gold is testing the $1950 level after it managed to get above the resistance at $1930. A successful test of the resistance at $1950 will open the way to the test of the next resistance at $1975 which will be bullish for silver and other precious metals.
Gold/silver ratio has managed to get below the support at 76.50 and is trying to get to the test of the next support level at October lows at 75.60. If gold/silver ratio settles below October lows, it will gain additional downside momentum and move towards the next support level near 73.50 which will be bullish for silver.
Silver managed to gain strong upside momentum and is testing the significant resistance level at October highs at $25.55. If silver manages to settle above this level, it will get to the test of the next resistance at $25.85. Silver has already tested this level during today’s trading session, faced strong resistance and declined closer to $25.55.
In case silver settles above the resistance at $25.85, it will gain additional upside momentum and head towards the resistance at $26.30. A move above $26.30 will open the way to the major resistance area near $27.00. Most likely, silver will need significant catalysts to settle above this area.
On the support side, the previous resistance at $25.00 will likely serve as the first support level for silver, although it can also get some support near $25.30. A move below the support at $25.00 will open the way to the test of the major support level at the 50 EMA at $24.45. A move below the 50 EMA will signal that the current upside momentum has come to an end and may lead to a sell-off.
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