Silver Price Daily Forecast – Test Of Support At $25.85

The U.S. Dollar Index failed to settle below the support at 92.80 and gained significant upside momentum amid global market sell-off which was caused by fears about the second wave of coronavirus.

Currently, the U.S. Dollar Index is trying to get above the resistance at 93.50. If this attempt is successful, the U.S. Dollar Index will head towards its 50 EMA at 93.80 which will be bearish for silver.

Gold is also losing ground and is trying to get below the 50 EMA at $1915. If gold manages to settle below the 50 EMA, it will gain additional downside momentum which will be bearish for silver and other precious metals.

Meanwhile, gold/silver ratio managed to get above its 20 EMA at 72.70 and developed upside momentum. The nearest significant resistance level for gold/silver ratio is located at the 50 EMA at 77.45. If gold/silver ratio moves closer towards the 50 EMA, silver will find itself under material pressure.

Silver gained significant downside momentum and is testing the nearest support level at $25.85. RSI is in the moderate territory so there is plenty of room to gain momentum in case the right catalysts emerge.

If silver manages to settle below the support at $25.85, it will head towards the next support level at the 50 EMA at $25.20. A move below the 50 EMA will present a major problem for silver bulls as it will indicate that silver is ready to establish a significant downside trend.

If silver moves below the 50 EMA, it will quickly get to the test of the next support level at $24.95.

On the upside, the previous support at the 20 EMA will serve as the first material resistance level for silver. A move above the 20 EMA will open the way to the test of the next significant resistance at $27.75.

This month, silver made two serious attempts to settle below the 20 EMA, but each attempt ended with a quick rebound. This time, silver has better chances to settle below the 20 EMA and develop additional downside momentum as fears about the second wave of the virus put significant pressure on markets and provide support to the U.S. dollar.