A Busy Day Ahead For The U.S. Dollar

• 8 May 2018

GOLD

Gold prices continue to test the 1310.50 price level after recovering from a recent sell-off. The metal is also testing the 20- period EMA and clearly, a break to the upside would be significant. MACD is undergoing a momentum reversal in support of the bullish move. Fundamental factors later in the day are likely to have a significant impact on near-term direction for Gold.

Impact event: Federal Reserve Chairman Powell is due to speak at 10:15 GMT+3 and later, President Trump is due to speak at 21:00 GMT+3.

USD/CHF

The USD/CHF pair continues to test a previous market top at the 1.0026 price level. The pair is strongly overbought, however, there are no current signals of a reversal in bullish sentiment. Will events later today push the pair beyond the current resistance area?

GBP/USD

The GBP/USD pair continues to make a moderate recovery from recent new price lows. RSI is testing the 30 support level and MACD is undergoing a momentum reversal.

USD/CAD

The USD/CAD pair is testing a recent resistance level at the 1.292 price level as the pair moves further into bullish territory. Momentum indicators have a positive bias, however volume is declining, indicating that U.S. Dollar buyers are losing steam.