Daily Insights Report 15/06/17

• 15 Jun 2017

USD/CAD

The USD/CAD pair appears to be trading in oversold conditions, though some kind of reversal is underway. Several consecutive breaks of the lower Bollinger band indicate that price has reached a statistical extreme. A doji candle at what appears to be the bottom of the trend could indicate a reversal with indecision from buyers and sellers. RSI is flat against the 30 support line. Price action has broken above the 1.324 line which was acting as a support level. A trend change will be confirmed by a candle closing above the 30 support level on RSI.

AUD/NZD

The AUD/NZD pair has spiked through the 20-day exponential moving average (EMA). Long lower shadows in consecutive candles suggest that there is buying pressure in the pair.  However, a full break of the 20-day EMA would confirm the bullish trend. The bullish momentum is further indicated by a crossover on MACD which has crossed the zero line. RSI has an upward trajectory supporting bullish price action.   

Impact event: Bank Of England Monetary Policy decision at 14:00 GMT+3.

Silver

Silver continues to experience downward pressure on prices. Price action has broken both the 50-day and 100-day moving average indicating that the market continues to be bearish on the asset. In yesterday’s trading session, high volatility resulted in price action spiking through 50-day simple moving average.  The move was not sustained by buyers as high selling pressure (long upper shadow) resulted in the closing price returning close to opening price. MACD has broken the zero line with a bearish crossover, confirming the downtrend.

AUD/USD

The AUD/USD pair has just broken the 100-day simple moving average after breaking the faster 50-day moving average. After a short downtrend prices appear to be moving higher over the medium-long term. MACD has also broken the zero line and has an upward trajectory. RSI has an upward trajectory, however is moving closer to overbought territory, suggesting that the current trend may lose steam.