Low Momentum To Start The Trading Week

• 22 Aug 2017

USD/JPY

The deceleration in bearish momentum yesterday resulted in a bullish reversal to start today’s Asian trading session. The pair is testing the 109.25 price level and the 20-period exponential moving average. A break of these two resistance lines will provide confirmation of the uptrend. MACD still has a negative bias, however, is turning more positive. RSI has flattened below the 50 support level.

GBP/USD

The GBP/USD pair has been trading in a fairly tight price range from the 1.284 to 1.290 price level, as neither currency has been able to dominate price action. The pair has hit a resistance level at the upper bound of price range at 1.290 and retraced to also break the 20-period EMA. MACD is approaching the zero line and becoming less negative and RSI remains flat. A previous less significant resistance level is at the 1.288 price level which the pair is starting to test. A full break will represent confirmation of the reversal.

SILVER

Silver prices have been bouncing along the 20-period EMA which is currently acting as a support level. The metal is also reaching the 16.92 price level which when hit on two previous occasions, resulted in a bullish move. MACD is flat just above the zero line and RSI is flat just above the 50 support level, indicating that momentum is moderately bullish. Price action will likely continue to fluctuate between the 17.16 and the 16.92 price levels.

GOLD

Gold prices have also been affected by low momentum. Price action has hit the 1288 price level and the 20-period EMA. A break of these support level will provide some momentum for the bearish move. However, the move seems unsupported by momentum indicators. MACD is flat above the zero line and RSI has a mild downward trajectory just below the overbought 70 level. Volume is low, therefore major fundamentals news is required to generate any significant move for the metal.