Major Peers Make Gains Over Weak U.S. Dollar

• 8 Sep 2017

GBP/USD

The British Pound has appreciated significantly over the U.S. dollar in this week’s trading with price action breaking above the 20-period EMA. MACD has also broken the zero line to the upside which provides weight to the uptrend. However, momentum is approaching the 70 overbought zone on RSI which may provide a stop to the current bullish sentiment. There appears to be plenty of upside for the pair in today’s trading session.

Impact event: U.K. Manufacturing Production data will be released at 11:30 GMT+3.

AUD/CAD

Perhaps taking longer than expected, the Aussie dollar has begun its recovery to a previous trading range after a surprise interest rate hike from the Bank of Canada. Price action has broken a previous support/market bottom at the 0.978 price level. This represents the first bullish candle since price action broke lower Bollinger and a close above the 0.978 price level and lower Bollinger, would confirm the uptrend.  Further confirmation comes from the bounce back off the 30 support level on RSI with a sharp upward trajectory.

Impact event: Canadian Employment data will be released at 15:30 GMT+3.

NZD/USD

The New Zealand dollar has also begun to dominate the U.S. Dollar with a sharp bullish move to break the 20-period EMA. Volume has climbed into the move which indicates strong conviction from buyers. RSI has an upward trajectory with further upside potential. Confirmation of the uptrend will come from MACD breaking the zero line.

USD/JPY

The USD/JPY pair has broken below a previous market bottom and the lower Bollinger band. Sentiment has been negative for the pair for an extended period as Dollar weakness continues. MACD remains below the zero line, although has been turning less negative in recent trading. RSI is approaching the 30 oversold line indicating there is potential for a bullish reversal in the near-term.  A bullish candle and a bullish crossover on MACD would be required before a reversal is indicated.