Daily Insights Report 10/08/2017

• 10 Aug 2017

SILVER

Silver prices have broken both the 20-period exponential moving average (EMA) and a previous resistance line at the 16.79 price level.  The current session has opened with prices turning lower and RSI indicates that the bullish momentum may not continue. MACD has crossed the zero line, however, which contradicts bearish indications from RSI. Volume appears to be rising into the bullish move and a full break (a close above the 16.79 price line) is required to confirm an uptrend.

AUD/USD

The AUD/USD pair has found resistance at the 38.2 Fibo level with a doji candle representing indecision. A bullish reversal is not indicated as MACD appears to be heading closer to the zero line and RSI has a downward trajectory. With volume rising it appears momentum is with the bears (sellers). The 20-period EMA is also providing support for the pair and a break of the moving average to the downside will provide further confirmation of the downtrend.

USD/CHF

The USD/CHF chart shows that the pair has reached a resistance level at the 0.966 price level. Again, the 20-period EMA is acting as support and given the direction of momentum indicators, it seems likely price action will again move above the MA and perhaps the resistance line. MACD has pushed above the zero line and RSI appears to be turning in a more positive direction.  Volume has been rising into the bullish move, however, the question is whether U.S. Dollar buyers have the conviction to push prices beyond the 0.966 price level.

Impact event: U.S. Producer Prices Index data will be released at 15:30 GMT+3, impacting all dollar pairs.

GBP/USD

The Pound has given up some ground against the U.S. Dollar in the last week of trading and is now testing a support level (previous resistance line) at the 1.29 price level.  The pair has also broken the 20-period EMA to the downside which further confirms that sellers are dominating the pair. Momentum indicators confirm the bearish sentiment with MACD heading towards the zero line and RSI moving towards the 30 support level. Volume is moderate indicating that there is still some appetite from sellers to push prices lower.