Fundamentals Likely To Dominate Price Action

• 23 Aug 2017

GBP/USD

The GBP/USD pair is currently testing a support level at 1.282 in which price action has tested once previously, resulting in a bullish reversal. MACD has turned negative in recent trading sessions with a cross below the zero line. RSI is approaching the 30 support level, indicating there is potential for another bullish reversal. Volume is rising indicating rising interest in the pair. A break of the 1.282 price level will send prices towards the 1.262 support line.

Impact event: Markit Manufacturing PMI at 16:45 GMT+3 will impact U.S. Dollar pairs.

USD/CHF

The USD/CHF pair has broken above both a resistance level at the 0.961 price level and the 20-period exponential moving average (EMA). Momentum indicators support bullish momentum with MACD moving above the zero line and RSI having an upward trajectory. The next price target for the pair is the 0.974 price level.

NZD/USD

The NZD/USD pair has hit a support level at the 0.722 price level which has previously resulted in a reverse in momentum. However, momentum indicators suggest that sentiment has turned bearish for the pair that has been struggling to find any directional bias in the last two weeks of trading. MACD has dropped below the zero line and RSI has a sharp downward trajectory. Clearly a break of the 0.722 price line is required to confirm the downtrend.

AUD/USD

Given a sharp rise in bullish momentum at the start of July, the AUD/USD pair has retraced back to hit the 38.2 Fibo level. Price action did previously hit the 50 Fibo level however was unable to reach the previous price high. Momentum indicators suggest there is still some downside bias and the 20-period EMA is acting as a support line for the pair. A break of the current Fibo level and the 20-period EMA is required to confirm further bearish momentum. However, interest appears to be declining as signaled by dropping volume.