Silver Gains Ground While Gold/Silver Ratio Declines
Silver gained strong upside momentum and managed to settle above the resistance at $24.50 while the U.S. dollar lost ground against a broad basket of currencies.
The U.S. Dollar Index managed to get below the support at 92.15 after the release of Non Farm Payrolls report which missed analyst estimates. The next support level for the U.S. Dollar Index is located at 91.90. A move below this level will open the way to the test of the support at 91.50 which will be bullish for silver and gold price today.
Meanwhile, gold is trying to settle above the resistance level at $1830. In case gold manages to settle above this level, it will head towards the next resistance at $1845 which will provide more support to silver.
Gold/silver ratio managed to settle below the 20 EMA at 74.85 and is moving towards the 74 level. In case gold/silver ratio gets to the test of this level, silver will get more support.
Silver is currently moving towards the resistance level which is located near the 50 EMA at $24.70. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum.
In case silver manages to settle above the 50 EMA, it will head towards the next resistance level at $25.00. A move above this level will open the way to the test of the resistance at $25.30. A successful test of this level will open the way to the test of the resistance at $25.60.
On the support side, a move below $24.50 will push silver back towards the support level at $24.20. If silver declines below this level, it will head towards the support which is located near the 20 EMA at $24.00. A move below the 20 EMA at $24.00 will open the way to the test of the next support level at $23.80. This support level has been tested many times in recent trading sessions and proved its strength so silver will likely get material support near $23.80.
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This article was originally posted on FX Empire