Euro-Area Currencies Make Gains Over The Dollar

• 7 Mar 2018

EUR/USD

The EUR/USD pair is beginning another bullish run after a period of downward pressure. The pair has broken the 20- period EMA to approach the 1.250 price level which the pair has rejected on two previous occasions. RSI and MACD are both bullish indicating there is further upside for the pair.

Impact event: Eurozone GDP data will be released at 12:00 GMT+2 and will impact all Euro pairs.

AUD/CAD

An inverted hammer candlestick at the top of the market in yesterday’s trading may be the first sign of a potential reversal. Heavy selling pressure was the first indication buyers are losing steam. Several breaks of the upper Bollinger band indicate the pair is overbought and this is confirmed with RSI reaching the 70 resistance zone. A momentum reversal, coupled with a break of the upper Bollinger band to the downside, would be required to signal a reversal.

Impact event: Bank Of Canada Rate decision at 17:00 GMT+2 will impact all CAD pairs.

GBP/USD

The GBP/USD pair has broken above the trend-line which has represented a strong resistance area for the pair. Whether the break will continue with further bullish moves, remains the question. Momentum indicators are mixed, with MACD breaking the zero line to the downside, yet RSI following an upward trajectory. Fundamental factors are likely to have a more significant influence in the pair and determine near-term direction.

GOLD

GOLD has broken the 20- period EMA and yet the 1340.52 price level has once again proven to be a resistance area for the metal, which it has rejected in the current trading session. RSI has stalled at the support line and MACD is on the verge of breaking the zero line to the downside. The move serves to confirm the longer-term descending trend, with consecutive lower highs.