Daily Insights Report 05/07/17

• 5 Jul 2017

GBP/USD

The GBP/USD pair has developed a spinning top candle in the current trading session which is immediately preceded by a candle with a long upper shadow. This indicates that although momentum is bearish, buyers are still very much in the market. Price action has reached the 23.6 Fibo level where it appears to have found support. A break of this level would likely result in further downward movement of price. MACD appears to be positive yet RSI has flattened below the overbought area.

USD/CHF

The USD/CHF has bounced off a market bottom and broken a previous support area at 0.961. The pair appears to also be approaching the 20-period exponential moving average. If price action is able to break above the EMA, the next price target is the 0.975. However, there are some signs that the current trend will not be sustained; MACD remains in negative territory, RSI is flat around the 50 level and volume is declining.

Impact event: FOMC Meeting Minutes will be released at 21:00 GMT+3.

SILVER

Silver has bottomed out at the 16.079 level and turned more bullish. RSI has also bounced off of the 30 support level and if the current candle closes above the 30 zone, a bullish reversal is indicated. There appears to be some indecision in the market indicated by the small bodied candles at the bottom of the trend. Although there are some buyers in the market, longer upper shadows indicate sellers are still dominating the price of the asset. Fundamental factors may come into play later in the U.S. trading session.

Impact event: FOMC Meeting Minutes at 21:00 GMT+3.

USD/JPY

The USD/JPY has found significant support around the 113.07 level which represented a fairly strong support area previously and required significant selling momentum to break as witnessed on the 17^th May. Clearly this is a key area for the pair and break of this level should result in continued bearish momentum to the first support level at 112.34. Again, the pair is likely to be impacted by the FOMC meeting later this evening in the U.S. trading session.