The Euro Is Active Ahead Of Draghi’s Speech

• 7 Nov 2017

EUR/CAD

Fortunes for the Euro appear to be changing after experiencing significant pressure from the CAD towards the end of last week’s trading. The 1.476 price level appears to be a sticking point, which has acted as a support level previously. A bullish candle at this price line indicates there may be a bullish reversal. Bearish momentum appears to have tailed off considering the drop in volume in recent trading sessions. However, momentum indicators have a downward trajectory. There may not be enough appetite from buyers to push prices higher. A break of the 1.476 price level to the upside would be an indicator for a trend reversal.

Impact event: Mario Draghi speech at 11:00 GMT+2 will impact all Euro pairs. Later in the day at 19:55 GMT+2, Governor Poloz will give a speech which may impact CAD pairs.

GBP/AUD

The Reserve Bank of Australia decided to keep interest rates on hold as expected, as labour markets begin to tighten. Despite the upbeat nature of the statement the British pound has dominated the AUD in recent trading sessions. The pair broke the 1.709 price level in yesterday’s trading session and has continued the bullish move in today’s trading. MACD remains in bullish territory and RSI indicates there is further upside potential. Volume, however, has been declining therefore it remains to be seen whether price action will reach the 1.732 price target.

SILVER

After a large bullish move in yesterday’s trading session, price action broke the 17.113 price level and the 20- period EMA. Despite the break, price action has turned bearish in today’s trading session. Momentum indicators confirm the bearish sentiment with MACD moving further into negative territory and RSI having a sharp downward trajectory. A break of the 17.113 price level would confirm the bearish reversal.

EUR/JPY

The EUR/JPY pair appear to be at the beginning of a trend change. Significant buying pressure in yesterday’s trading session can be seen by the large upper shadow, despite a bearish candlestick. Today’s session opened with a bullish candle. RSI has a sharp upward trajectory confirming bullish momentum, however, MACD is moving sharply towards the zero line. A break of the 20- period EMA would signal the bullish trend has begun.