Daily Insights Report 13/06/17

• 13 Jun 2017

USD/CAD

The USD/CAD pair appears to be trading in oversold conditions. Price action has broken and sustained the break below the lower Bollinger band. RSI has approached the 30 support line. Prices have been influenced by comments from Governor Wilkins, who indicated that the Bank of Canada was looking at raising interest rates. Given the extent of the drop, a reversal or retracement could be on the cards. However, MACD remains negative with increased divergence below zero.

Impact event: Producer prices data released at 15:30 GMT+3.

EUR/GBP

he EUR/GBP pair appears to be overbought. The pair has broken the upper Bollinger band and a 5-month resistance level at 0.880. A double bottom on RSI resulted in a bullish breakout which has since flattened around the overbought 70 resistance area. MACD remains in positive territory, however, is a lagging indicator.

Impact event: The U.K. Consumer Price Index at 15:30 GMT+3.

GOLD

Gold prices have met a support area at the 20-day exponential moving average at the 1,266.49 level and 38.2 Fibo level. RSI has also found support at the 50 level. MACD has established a bearish crossover indicating that the market has downward momentum. Any confirmation of the downtrend will be based on a break of the 38.2 Fibo level.

Silver

Silver has broken a 20-day exponential moving average at the 17.20 level and has found support around the 50 level. MACD has turned negative with a bearish crossover. Further, RSI has broken a support level at 50 and has a downward trajectory. A break of the 50 Fibo level may indicate that the downtrend is more significant.