Silver Price Daily Forecast – Support At $19.00 Is Strong

Silver Video 17.07.20.

Silver Maintains Upside Momentum

Silver tested the support level at $19.00 and quickly rebounded back above this level as gold continued to trade closer to yearly highs while the U.S. dollar lost ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the 96 level. A move below 96 could lead to increased downside momentum and push the American currency towards yearly lows that were reached back in March.

This scenario will be bullish for silver and other precious metals as weaker dollar makes them less expensive for investors who have other currencies.

Gold made another attempt to settle below $1800 but the support at this level is strong. Currently, gold is consolidating above $1800 and has good chances to continue the upside move without a pullback which will be a favorable scenario for the whole precious metal segment.

Gold/silver ratio tried to rebound but met significant resistance at the 95 level and returned back below 94. In my opinion, gold/silver ratio maintains solid downside momentum and has the potential to go lower which will be bullish for silver.

Technical Analysis

 

Silver made an attempt to settle below the support at $19.00 but failed to develop any downside momentum and returned back above this support level.

At this point, silver’s upside momentum remains intact, and silver has good chances to get to the test of the nearest resistance level at $19.50.

RSI has declined closer to moderate levels so there is sufficient room to build more momentum in case the right catalysts emerge.

In case silver gets above $19.50, it will head towards the next resistance level at $20.00.

On the support side, the nearest support level is $19.00. This support level has just been tested and proven its strength.

This test was very important since silver experienced material downside after failure to settle above $19.00 at the beginning of this year, so a move below $19.00 could have led to short-term panic among silver bulls.

In this scenario, silver would have gained downside momentum and headed towards the next support level at the 50 EMA at $18.50.

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