Daily Insights Report 03/07/17

• 3 Jul 2017

EUR/USD

The EUR/USD has broken the upper Bollinger band on three consecutive occasions followed by a bearish candle in the previous trading session. Price action has now broken below the upper Bollinger band. RSI is flat against the 70 overbought line and if the current candle closes below the 70 resistance line on RSI, a reversal is indicated. The MACD line indicates momentum is still somewhat bullish.

Impact event: ISM Manufacturing PMI data will be released at 17:00 GMT+3 and will impact all dollar pairs.

AUD/USD

The AUD/USD pair has reached a statistical extreme with a break of the upper Bollinger band. A doji candle at the top of the market in the previous trading session indicates a potential reversal. The current candle has broken the upper Bollinger band. RSI has flattened at the 70 resistance level so if the current candle can continue the break and close below 70, a reversal is indicated. MACD remains in positive territory. Volume has been climbing in the last few trading sessions, indicating an increase in interest/trading activity in the pair.

SILVER

The 20- period exponential moving average (EMA) appears to be providing resistance for Silver prices with prices spiking through but unable to break the EMA. Additionally, price appears unable to break the 38.2 Fibo level and has bounced back to the 23.6 Fibo level. A break of the 23.6 Fibo level will indicate whether it is a retracement or a bearish reversal. The 20- period EMA has a downward trajectory and RSI is flat. The MACD line has flattened and remains below the zero line.

GOLD

The 1 hour chart for Gold indicates the potential end of the short-term downtrend. After several breaks of the lower Bollinger band, buyers appear to have returned. The previous trading session closed above the lower Bollinger band and the current candle suggests buying momentum. RSI has also moved off the 30 support zone and if the current candle closes above 30, a reversal may be underway.

Impact event: Manufacturing data from the Eurozone at 11:00 GMT+3 and the U.S. at 17:00 GMT+3.