Fundamentals Likely To Have Greater Impact On Price Action

• 13 Sep 2017

GBP/AUD

The GBP/AUD daily chart shows a break of the 20- period EMA and a previous support level at the 1.629 price level. Momentum indicators suggest sentiment is turning more positive, with MACD fast approaching the zero line; a break to the upside would confirm the uptrend. RSI still has some upside as the pair has not reached overbought territory yet.

AUD/USD

The AUD/USD pair has broken the upper Bollinger band with an inverted hammer candlestick. The candlestick indicates that bulls are still in the market but have been unable to push prices higher during the trading session. This has been immediately followed by a bearish candlestick. RSI has flattened along the 70 overbought line. MACD indicates there is still some residual bullish sentiment for the pair, however, it is a lagging indicator. A bearish reversal seems likely as buyers appear to be losing steam at the top of the market.

Impact event: U.S. Producer Prices Index data will be released at 15:30 GMT+3 will impact U.S. Dollar pairs.

EUR/CAD

The EUR/CAD daily chart shows the pair testing the lower Bollinger band. MACD is also testing the zero line and RSI has a downward trajectory, with further downside before reaching the 30 support line. There appears to be relative indecision in the market, denoted by the doji candle to break lower Bollinger followed by both bullish and bearish trading sessions. Fundamental factors will likely have greater influence over price direction.

Impact event: Eurozone Industrial Production and Employment Change data will be released at 12:00 GMT+3 and will impact all Euro pairs.

NZD/USD

The NZD/USD daily chart highlights a break of the 20-period EMA to the upside and a bullish break of the Bollinger mid-line. Volume has been rising into the move indicating strong conviction from buyers. Positive sentiment has been confirmed by RSI which has an upward trajectory, however MACD remains below the zero line. A bullish break on MACD will confirm the uptrend. The price target is the upper Bollinger band- currently sitting at the 0.733 price level.