Low Momentum In Friday’s Asian Session

• 24 Nov 2017

EUR/USD

The EUR/USD has enjoyed a strong bullish run in the last few trading sessions breaking the 1.180 price level. However, the pair tested the upper Bollinger band in yesterday’s trading session and RSI has flattened just below the 70 overbought line. MACD is approaching the zero line and a break may be significant in determining near-term price action. There are signals however, aside from overbought conditions that the upsurge may be short-lived. Declining volume indicates waning interest in the pair and as a result, may decelerate the bullish move.

SILVER

Given the positive correlation to the Euro, it is unsurprising to see Silver prices rising out of its extended trading range in recent sessions. A break of the 20-period EMA has resulted in the metal testing the 17.11 price level. Previous breaks of the price level have resulted in immediate bearish reactions. However, Silver is on the verge of breaking the zero line and RSI has an upward trajectory.

EUR/CAD

The EUR/CAD pair has surge from a previous resistance area at the 1.499 price level, towards a previous market top at the 1.510 price level. This price level appears to be a strong resistance line, however as a marked bearish move followed the previous top. Although momentum indicators confirm bullish momentum, RSI is approaching the 70 overbought line. Volume is declining which suggests little conviction from buyers to push prices higher.

EUR/GBP

The EUR/GBP has crossed the 20 period EMA and is now testing the 0.892 price level. At the same time, MACD looks close to breaking the zero line and a break would provide weight to the bullish advance. RSI also has an upward trajectory, therefore a break of the 0.892 price line should send prices higher. From a fundamental perspective, the Pound may struggle amidst political uncertainty which could provide support to the Euro.