Daily Insights Report 19/06/17

• 19 Jun 2017

USD/JPY

The USD/JPY pair has broken the 20-day exponential moving average (EMA), indicating a reversal of sorts of the recent downtrend or weakness in the U.S. Dollar. The trend change was also confirmed by a bullish crossover on MACD, with momentum crossing the zero line within the last three bars. The next resistance area for the pair is the 111.50 price level and a break of this line would confirm a trend change for the pair.

GBP/JPY

Market activity in the GBP/JPY pair highlights indecision regarding where future prices should go. The pair has been in a relative downtrend for the 6 weeks with a descending flag pattern. Price action has, however, broken the 20-day exponential moving average. The break lacks conviction and it remains to be seen whether the recent bullish momentum will result in a bearish follow-up move to complete the flag pattern. RSI is flat at the 50 resistance line and the 20-day EMA has provided a resistance level for the pair. MACD indicates that current momentum is bullish. If price action can have a more convincing break above the EMA, a trend reversal may be indicated.

Gold

Gold prices have broken the 50-day moving average and the ‘unofficial’ 50 Fibo level. Price action appears to be heading towards the 100 day moving average and a significant support area at the 1,245 level. The 1,245 level represents the 61.8 Fibo level and if price action hits this point a bullish reversal may be indicated. MACD indicates that momentum has turned bearish, with momentum breaking the zero line in the last four bars.

USD/CAD

The USD/CAD has broken the lower Bollinger band on consecutive trading session, indicating a statistical extreme has been met. The breaks have been followed by a bullish candle for the current trading session. RSI also confirms oversold conditions, with a bounce off of the 30 support level, followed by an upward/bullish trajectory. MACD appears to maintain a bearish trajectory, though has flattened.