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Silver Price Daily Forecast – Resistance At $24.55 Proved Its Strength

Silver Failed To Gain Upside Momentum Despite Weaker U.S. Dollar

Silver continues to trade below the 50 EMA at $24.55 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the nearest resistance level at 93 but managed to stay above the nearest support level at 92.80. If the U.S. Dollar Index gets below the support at 92.80, it may gain additional downside momentum and provide some support to silver and other precious metals.

Meanwhile, gold is glued to its 50 EMA level just above $1900. This month, gold failed to develop any momentum. Perhaps, traders did not want to make major bets before the U.S. presidential election which may significantly increase volatility in the precious metal space.

Gold/silver ratio continues to test the nearest resistance at its 50 EMA at 78.25. If gold/silver ratio settles above this resistance level, it will gain additional upside momentum and head towards the 80 level which will be bearish for silver.

Technical Analysis

Silver has recently made an attempt to settle above the nearest resistance level at the 50 EMA at $24.55 but failed to gain upside momentum and declined below this key level.

The nearest support for silver is located at $23.90. If silver manages to settle below this level, it will decline towards the next support at $23.30. In case silver moves below the support at $23.30, it will head towards the test of the support at $22.90.

On the upside, silver must deal with the resistance at the 50 EMA at $24.55 in order to develop upside momentum. The next resistance level is located at $25.00. In case silver gets above this level, it will head towards the resistance at $25.55.

From a big picture point of view, silver has already made two significant attempts to gain upside momentum above the 50 EMA, and both attempts failed.

At this point, silver needs additional catalysts to continue its rebound after the sell-off in September. Most likely, additional weakness of the U.S. dollar will be required to push silver above October highs.

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

Read More: Silver Price Daily Forecast – Resistance At $24.55 Proved Its Strength

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