Silver Price Daily Forecast – Silver Makes Another Attempt To Settle Above $17.50

Silver Video 19.06.20.

Silver Gets A Boost From Gold Price Upside And General Market Optimism

Silver continues its attempts to gain upside momentum and settle above $17.50 as the U.S. dollar loses some ground against a broad basket of currencies while the equity market continues to rally.

The U.S. Dollar Index failed to get above the resistance at 97.5 and pulled back but stayed above the 97 level. A weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.

Gold is gaining some ground but stays below the key $1750 level. Importantly, gold managed to close above the 20 EMA for a number of trading sessions, and it looks like it has decent chances to test the $1750 level in the near term.

A successful test of this level will boost the whole precious metal segment so silver traders should watch this gold level closely.

Gold/silver ratio did not get above 100 and stays below the 20 EMA at $99.20, increasing the potential for additional downside. Before the coronavirus crisis hit the world economy, gold/silver ratio was below 90, and a return to such levels will be very bullish for silver.

Technical Analysis

Silver is once again trying to settle above the resistance level at $17.50. In my opinion, silver has good chances to get higher as it spent some time near $17.50 without a pullback while the support at the 20 EMA has risen to $17.40.

If silver finally manages to settle above the resistance at $17.50, it will gain upside momentum and head towards the next resistance level at the recent highs below $18.50.

From a bigger picture point of view, an upside move from a solid base could create sufficient momentum to get to the test of the major resistance level at $19.00.

On the support side, silver will have to get below the 20 EMA at $17.40 to develop downside momentum. In this case, silver will head to test the major support level at $17.00. This level has already been tested many times so silver could count on strong support near $17.00.

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