Daily Insights Report 09/06/17

• 9 Jun 2017

GBP/USD

The prospect of a hung parliament has taken its toll on the Pound as the Conservative party failed to reach a majority. Price action has broken the 20-day exponential moving average, hitting a two-month low. RSI shows the pair is oversold, however, with further uncertainty in the coming days, prices could head lower.

GOLD

Gold prices have bounced off the upper Bollinger band and have headed lower.  The bearish move has been confirmed by the beginning of a break of the 20-day EMA. According to MACD momentum has turned less positive for the metal as investor sentiment switches to risk-on assets.  RSI has a sharp downward trajectory.

AUD/JPY

The Australian dollar appears to have reacted to the contraction in home loans for the month of April as the housing boom appears to be cooling. Major peers have made gains over the Australian dollar as a result. The AUD/JPY pair has broken the 20-day exponential moving average (EMA). There is also a bullish cross on MACD with RSI touching the resistance line at 50. The move however, has not fully developed and a close above the EMA is required to confirm the uptrend.

AUD/CHF

The AUD/CHF pair has broken the 20-day exponential moving average (EMA), however, the pair appears to be in a descending flag pattern, indicating that prices may snap back and head lower. However, a full break has occurred above the EMA will a candle closing above this resistance line. MACD is sharply positive and RSI has an upward trajectory.