Long-Term Bullish Sentiment Buoys The Pound

• 16 Mar 2018

USD/CHF

The USD/CHF pair has broken above the 50- day moving average indicating that near-term momentum is bullish. MACD has also broken the zero line to the upside as confirmation of the bullish sentiment.

NZD/USD

The New Zealand Dollar has broken below the 50-day SMA which indicates that there is some bearish bias, however, there is significant divergence of the 50-day and 100-day SMA. Additionally, MACD remains neutral at the zero line which may indicate that the current bearish bias will no continue over longer-term horizons.

EUR/GBP

The EUR/GBP pair has broken both the 50-day and 100-day SMA to the downside, suggesting that long-term momentum for the pair is bearish. If the current candle closes below the SMAs then the downtrend is established. MACD is approaching the zero line; clearly a break would provide weight to the downtrend.

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

GBP/NZD

The GBP/NZD pair confirms bullish momentum for the Pound. Strong bullish candlesticks have resulted in a break of both the 50-day and 100- day moving average. MACD remains neutral however just below the zero line. The question is: will buyers have the conviction to continue pushing prices higher in the long-term?