Silver Price Daily Forecast – Resistance Test at $ 23.20
Silver is gaining ground as the dollar falls after a disappointing report on non-farm payrolls
Silver recently attempted to settle above the resistance at $ 23.20 while the US dollar lost ground against a broad basket of currencies.
The US dollar index came under pressure following the release of the Non Farm Payrolls report. The report showed that the U.S. economy only created 194,000 jobs in September, compared with an analyst consensus of 500,000, which was bearish for the American currency. Currently, the US dollar index is trying to lower below the 94 support. If the US dollar index manages to get below this level, it will move towards the next support at 93.75, which will be bullish for silver and gold today.
Meanwhile, gold made an attempt to settle above the key resistance level at $ 1,775, but failed to develop sufficient upward momentum and pulled back. The 10-year Treasury yield recently managed to climb back to 1.60%, which was bearish for gold and other precious metals. If gold tests the next support at $ 1750, silver could come under pressure.
The gold / silver ratio has settled below the 20 EMA at 77.40 and tests the 77 level. If this test is successful, the gold / silver ratio will move towards the support at 76.50 which is for Silver will be bullish.
Silver attempted to move above $ 23.20 but encountered strong resistance and retreated towards the 20 EMA near $ 22.80. If silver stays above the 20 EMA, it has another chance to test the resistance level at $ 23.20.
A successful test of this resistance level opens the way to test the resistance at the 50 EMA at $ 23.50. If silver manages to settle above the 50 EMA, it will move towards the next resistance level, which is at $ 23.90.
On the support side, a move below the 20 EMA will push silver towards the support at USD 22.60. If silver falls below this level, it will head for support at $ 22.30. A successful test of the support at $ 22.30 will pave the way to the test of the support at $ 22.10.
You can find an overview of all today’s economic events in our economic calendar.