Daily Insights Report 16/08/2017

• 16 Aug 2017

USD/JPY

The USD/JPY pair has reached a recent resistance level having broken a previous resistance line at 109.91. Price action has also moved above the 20-period exponential moving average (EMA), indicating momentum is bullish. MACD remains in negative territory, although has flattened. RSI has also flattened just below the 50 resistance line. Volume appears to be comparatively high, indicating plenty of interest in the pair. The question is whether buyers have enough conviction to push prices beyond the 110.74 price level and close above the 20-period EMA. If so, the bullish reversal is confirmed.

Impact event: F.O.M.C Meeting minutes will be released at 21:00 GMT+3 and will impact all dollar pairs.

GBP/USD

The GBP/USD pair has broken a support level at 1.297 with a strong bearish move towards the 1.283 price level.  MACD confirms the negative sentiment for the pound and has broken below the zero line. RSI has stalled just above the 30 oversold zone indicating there is is still room for further downside. As further confirmation, price action remains below the 20-period EMA. Price action may move further into bearish territory and test the 1.283 price level. A break of this price level would indicate longer-term bearish sentiment for the pair.

NZD/USD

The NZD/USD chart indicates the pair is testing the 0.721 price level which previously represented a support level for the most recent bullish move. MACD indicates bearish momentum may be sustained at least in the short term, with a break below the zero line. Price action is also testing the lower Bollinger band with RSI reaching the 30 oversold line. Volume has been declining into the bearish move which may indicate that the downtrend will not be sustained.

SILVER

Silver prices are testing the 20-period EMA which has been acting as a support level for the asset. The metal has also broken a previous resistance line at the 16.79 price level. The next price target is the 16.38 price level, however there are indications that bearish momentum may be short-lived. RSI has an upward trajectory and MACD remains in positive territory. A break of the 20-period EMA would be significant, indicating that sellers continue to dominate momentum for the asset.