Daily Insights Report 19/05/17

• 19 May 2017

USD/CHF

The USD/CHF has broken a fairly significant support level at 0.9855 as the pair experienced high volatility on 17^th May. However, price action has also broken lower Bollinger and turned bullish which could indicate the end of the downtrend. The spinning top candlestick also serves as some confirmation that bears have lost conviction and a reversal may be underway. There is conflicting evidence from other indicators as to the direction of the pair.

SILVER

Silver briefly broke the 20-day EMA and the previous support at 16.87, however, was unable to sustain the move. The 23.6 Fibo level appears to be a support zone, therefore any break through this area and the 16.87 support line, would represent a significant move. RSI and MACD indicate that sentiment is turning more bullish and rising volume suggests there is significant interest in the asset.

USD/JPY

After a sustained uptrend the USD/JPY pair has retraced beyond the 50 Fibo level. The pair appears to have found some support around the 61.8 Fibo level and the 110.23 support line. Price action pierced through the 61.8 Fibo level but was unable to move through the support level. Momentum indicators suggest that sentiment is bearish.

AUD/CAD

The AUD/CAD has hit a trend line which has proved to be a support level for the pair. The pair is in a clear uptrend and each time (approximately 3 times) price has approached the support level it has bounced back up, with higher highs and higher lows. Significant selling pressure has pushed momentum bearish with MACD breaking support at the 0 line. It remains to be seen if the support level will be broken signaling the end of the uptrend.

Impact event: Canadian Retail Sales and Consumer Price Index data will be released at 15:30 GMT+3, with estimates suggesting an improvement in both indicators.