Dollar Weakness Continues In Mid-week Trading

• 6 Sep 2017

GBP/USD

The GBP/USD pair has broken the 20-period EMA to the upside with a clear break of the moving average. Momentum indicators have an upward trajectory indicating momentum is turning bullish. A break of the zero line on MACD would provide further weight to the upside momentum.

GOLD

Revisiting the Gold rally, there appears to be a few mixed signals. Moving averages have an upward trajectory which would suggest the bullish momentum will continue. Volume has been dropping into the bullish move suggesting the trend is losing steam and a spike in volume has resulted in a small-bodied bullish candlestick to break the upper Bollinger band once again. RSI also appears to be moving back from a break of the 70 overbought line. The metal has reached a market high that is unlikely to continue in the long-term.

USD/JPY

A bullish reversal could be imminent when reviewing the daily USD/JPY chart. A hammer candlestick at the bottom of the most recent bearish rally could signal the end of the downward move. A touch of the lower Bollinger band indicates prices have reached a price low. RSI has some further downside before reaching the oversold area at 30. However, MACD indicates that sentiment has turned more bearish in recent trading sessions.

EUR/GBP

The EUR/GBP has broken 2 moving averages; the mid-line on Bollinger and the 20-period EMA. Strong selling pressure to form the break indicates there is significant conviction behind the downward move.  A full break (a candle closing below both moving averages will confirm the downtrend). Both momentum indicators have a downward trajectory.