Major Pairs Test Key Levels As Trading Week Comes To An End

• 19 Jan 2018

USD/CHF

The USD/CHF pair has reached oversold conditions as the U.S. Dollar continues its weakness. Several breaks of the lower Bollinger band resulted in a a snap back for the pair. Bearish momentum still continues as highlighted by MACD, despite the pair reaching the 30 support level on RSI. With no major events scheduled in the U.S. today, the trajectory for the pair will likely remain the same to close out the week.

EUR/USD

Several breaks of the upper Bollinger band has not resulted in a reversal for the EUR/USD pair. The pair has been in a sustained uptrend and despite also hitting the 70 resistance level on RSI, with buyers continuing their dominance.  The current trajectory is likely to remain unchanged in today’s trading.

GBP/USD

The Pound also continues to dominate against the Dollar with seven consecutive bullish candles forming the most recent bull run. Volume is rising into the pair and moving averages mirror the upward trajectory. There is a statistical phenomenon that often results in a reversal after a week of bullish candles such as this, which may result in a trend change in Monday’s trading.

Impact event: U.K. Retail Sales data will be released at 11:30 GMT+2 and will impact all GBP pairs.

GBP/CAD

The GBP/CAD pair’s trajectory also demonstrates the Pound’s strength over another North American rival. Having broken several resistance levels at the 1.710 and 1.722 price lines, the pair appears to be stalling. At the same time, RSI has reached overbought levels  and selling pressure is rising. The bullish momentum may not continue.