Silver Continues Its Attempts to Gain Additional Upside Momentum
Silver is testing the nearest resistance level at the 50 EMA at $24.55 as the U.S. dollar is losing ground against a broad basket of currencies.
The U.S. Dollar Index failed to settle above the resistance at its 50 EMA at 93.75 and pulled back. The nearest support for the U.S. Dollar Index is located at the 20 EMA at 93.55.
If the U.S. Dollar Index moves below this support level, it will gain additional downside momentum which will be bullish for silver. A weaker dollar is a positive catalyst for silver as it makes it cheaper for buyers who have other currencies.
Meanwhile, gold is roughly flat. Gold is testing its 50 EMA level at $1905 but has so far failed to develop material upside momentum. In case gold moves towards the resistance at the recent highs at $1930, silver and other precious metals will get additional support.
Gold/silver ratio is stuck between the support at the 20 EMA at 77.95 and the 50 EMA at 78.40. In case gold/silver ratio moves below the 20 EMA, it will gain additional downside momentum and head towards October lows near 75.50. This scenario will be bullish for silver.
Silver is trying to settle above the nearest resistance level at the 50 EMA at $24.55. If this attempt is successful, silver will gain additional upside momentum and head towards the next resistance level at the recent highs at $25.55.