Commonwealth Currencies Active In Early Trading

• 18 Sep 2017

EUR/GBP

The EUR/GBP daily chart shows the pair breaking the lower Bollinger band on five consecutive occasions. A break of the zero line on MACD also confirms the bearish momentum. However, RSI indicates that the asset is oversold with a break of the 30 support line. Price action may be targeting the 0.874 price level before a bullish reversal takes place.

Impact event: Eurozone CPI data will be released at 12:00 GMT+3 and will impact Euro pairs.

EUR/CAD

The EUR/CAD pair indicates that the Euro is gaining over its North American peer. Price action is testing a previous support level at 1.455 and a break of this resistance level would give weight to the uptrend. Momentum indicators provide little confirmation of the uptrend with RSI approaching the 30 oversold line and MACD remaining below the zero line. It may be some time before there is a strong bullish move and a rejection of the 1.455 price level may send the pair back to the 1.449 price level.

GBP/AUD

After a strong bullish run, Pound buyers appear to be losing steam. Four consecutive breaks of upper Bollinger band have been followed by a bearish start to today’s trading session. RSI has bounced back from oversold conditions and a candle closing below the 70 line would give weight to the downtrend. MACD looks close to breaking the zero line, but is a lagging indicator. Today’s trading session will give indication of the near-term direction for the pair.

NZD/USD

The NZD/USD pair has pierced the 0.733 price level whilst also touching upper Bollinger band. Selling pressure appears to be underway in today’s trading session as buyers struggle to gain momentum. The 20-period EMA and RSI support the bullish move and MACD is fast approaching the zero line. A break of the zero line may coincide with a push beyond the 0.733 price level. If this level is rejected, price action will likely range between the 0.720 and 0.733 price levels.