Silver Rebounds After U.S. Inflation Reports
Silver continues its attempts to settle above the resistance at $23.80 while the U.S. dollar is under pressure against a broad basket of currencies.
The U.S. Dollar Index has recently made an attempt to settle below the support at the 50 EMA at 92.45 but failed to develop sufficient downside momentum and rebounded towards 92.50. In case the U.S. Dollar Index declines below the 50 EMA, it will move towards the next support at 92.30 which will be bullish for silver and gold price today.
Gold is currently testing the significant resistance level at $1800. A successful test of this level will open the way to the test of the resistance at $1830 which will be bullish for silver.
Gold/silver ratio settled above 75.50 and is trying to settle above the 76 level. If this attempt is successful, gold/silver ratio will gain additional upside momentum which will be bearish for silver.
It should be noted that Treasury yields gained downside momentum after the release of U.S. inflation data for August. Currently, the yield of 10-year Treasuries is trying to settle below 1.28%. If the yield of 10-year Treasuries settles below this level, it will have a good chance to get to the test of the support at 1.25% which will be bullish for silver.
Silver is currently trying to settle above the nearest resistance level at $23.80. If this attempt is successful, silver will get to the test of the next resistance at the 20 EMA at $24.00.
A move above the 20 EMA will push silver towards the resistance at $24.20. In case silver settles above this level, it will head towards the next resistance level at $24.50.
On the support side, silver needs to settle below the support at $23.50 to have a chance to develop downside momentum. The next support level is located at $23.20. In case silver declines below this level, it will move towards the support at $22.90.
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This article was originally posted on FX Empire