Silver price: Will Powell’s testimony yield a breakout?

Summary:

Silver price has been struggling to get past $26. Besides, the metal is still trading below the 200-day EMA ahead of Powell's testimony.

Silver price is still struggling to get past $26. Its struggles are similar to gold, which has been finding resistance below $1,750. Platinum and palladium have also been trading sideways for five consecutive days below $1,200 and $2,650 respectively.

The strengthening US dollar has exerted pressure on silver and other precious metals. On Tuesday, the dollar index was up by 0.47% at 92.16. Furthermore, the Sterling Pound and Euro dropped against the greenback; both by 0.48%.

Investors now await Powell and Yellen’s testimony today. On Monday, the Fed Chair noted that while the US economy had made significant strides in its recovery, it still had a long way to go.

Silver Price Technical Outlook

Silver price often moves in the same direction as gold; seeing that they are both safe havens and hedges against inflation. Just like gold, silver has been trading below the 200-day exponential moving average. Besides, it is currently below the shorter EMAs of 14 and 28 days.

Until the bulls are able to push the prices past the 200-day EMA, the bearish outlook will remain. An uptrend will be apparent if the metal moves past 26.50. At that point, the bulls will be targeting the upper levels of $27 and $28.

At its current level of 25.25, silver price is likely to trade sideways for several sessions along the support level of 25.00. 25.50 and 26 are the current resistance levels to look out for.