[ad_1]
Silver is under pressure ahead of the weekend
Silver recently made an attempt to break below the USD 22.10 support as the US dollar gained ground against a broad basket of currencies.
The US dollar index gained significant momentum and hit the resistance level at 93.40. Government bond yields hit multi-week highs, which was bullish for the US dollar and bearish for precious metals. If the US dollar index manages to level above the resistance at 93.40, it will move towards the next resistance at 93.75, which will be bearish for today’s silver and gold prices.
Meanwhile, gold continues to attempt to settle below the support level at $ 1,750. It looks like gold is getting some support from safe haven purchases, but it remains to be seen whether it will be enough to push gold back above $ 1750. If gold finally manages to break below the $ 1750 support, it will head for the next support level at $ 1720, which will be bearish for silver.
The gold / silver ratio received strong support near the 77 mark and rebounded above the 78 mark. Should the gold / silver ratio test 79, silver will come under more pressure.
Technical analysis
Silver recently tried to level below the USD 22.10 support but failed to develop sufficient bearish momentum and rebounded towards USD 22.30.
Eventually, if silver does break below $ 22.10, it will be nearing the next support level, which is at $ 21.90. Movement below this level will push silver towards the support at $ 21.65.
On the other hand, silver has to level off above USD 22.30 in order to have a short-term chance of gaining upward momentum. The next resistance level is at $ 22.60.
If silver rises above $ 22.60 it will move towards the resistance at $ 22.90. A successful test of the resistance at $ 22.90 will pave the way for testing the next resistance level, which is at $ 23.20.
You can find an overview of all today’s economic events in our economic calendar.
This article was originally published on FX Empire
More from FXEMPIRE:
[ad_2]
