Major Pairs Begin To Develop Long Term Trends

• 23 Apr 2018

USD/CAD

The USD/CAD pair has broken the 100-day simple moving average (SMA) and is fast approaching the 50- day SMA. If price action is able to break and move above the SMA, the uptrend is confirmed. MACD supports the bullish move with a clear momentum reversal from a bearish position.

Impact event: BOC Governor Poloz is due to speak at 10:30 GMT+3 and his remarks will likely impact all CAD pairs.

EUR/USD

The EUR/USD pair appears to be embarking on a longer- term downtrend with a break of the 50- day SMA. Buying pressure has risen since the break which has also resulted in MACD teetering along the zero line. A break of the zero line will be required to indicate a stronger shift in a bearish direction.

GBP/USD

Sellers appear to have returned to the GBP/USD pair and are dominating price action as volume has spiked on a sharp bearish move. The move has culminated in a break of the 50- day SMA. Clues as to whether the bearish sentiment will remain may be found in MACD, which is currently undergoing a momentum reversal.

AUD/NZD

The AUD/NZD pair is testing the 50- day SMA to the upside with an extended bullish run for the Australian Dollar over its closest counterpart. MACD has undergone a momentum reversal and volume appears to be rising into the bullish move. A break of the 50- day SMA and a break to the upside on MACD would be required for entry positions.