Brexit Uncertainty Causes Euro Sell-Off

• 12 Dec 2018

USD/JPY

 

 

The USD/JPY pair has entered into a symmetrical triangle pattern and is now approaching the upper trendline of the pattern, as buyers return to the pair. The pair is yet to reach the apex of the triangle at which point a breakout is expected. Momentum indicators are mixed with MACD approaching the zero line and RSI beginning an upward trajectory.

 

 

 

 

EUR/USD

 

 

The EUR/USD pair has also developed into a sharp symmetrical triangle pattern, which remains intact despite recent selling pressure. The pair is now testing the lower trendline, however, buyers have returned. Momentum indicators are neutral if slightly bearish.

 

 
 
 
 GBP/USD

 

 

Fundamental factors influenced the recent sell-off in the GBP/USD pair and these factors continue to put pressure on the Pound, as the pair breaks a recent floor at the 1.269 price level. Momentum indicators are moderately bearish with MACD remaining below the zero line and RSI bouncing along the 30 level.

 

 

 

 

USD/CHF

 

The USD/CHF pair has bounced back from the 0.986 price level as buyers returned when price action hit this key support area. Price action is now approaching the previous 0.997 price level. MACD has broken the zero line and RSI is undergoing a mild momentum reversal.

 

 

 

 

USD/CAD

 

 

The USD/CAD pair has broken the ascending trendline and the 1.334 price level which represents a previous price high. Selling pressure has begun to rise in recent trading, which may indicate the start of a reversal. Momentum indicators are bullish; with MACD extending its position into bullish territory and RSI approaching overbought conditions. 

 

 

 

SILVER

 

Silver has rebounded from the 14.03 price level to maintain a recent trading range between the 14.03 and 14.91 price levels. Buyers have returned to the metal to break the 14.41 price level. Momentum indicators have turned bullish with MACD breaking the zero line and volume has climbed into the move. 

 

 

 

 

GOLD

 

 

Gold has broken the 1241.48 price level and the next resistance area for the metal is the 1258.20 price level. Sellers have returned since the break which has seen a slowdown in the rally. Momentum indicators have turned sharply bullish, however RSI has pulled back from the 70 resistance area. 

 

 

 

 

OIL

 

 

Oil has made a mild recovery after an extended sell-off and now appears to be consolidating with a string of doji candles. Both sellers and buyers appear to be active. Momentum indicators are beginning a momentum reversal.