Daily Insights Report 22/05/17

• 22 May 2017

NZD/JPY

The NZD/JPY pair has broken a support level at 77.23. Price action has also pierced both the 38.2 Fibo level as well as the 20-day exponential moving average. The pair appears to have retraced from a bottom indicated by a series of doji/spinning top candles. Similarly, MACD has broken the zero line. Additionally, RSI has an upward trajectory.

SILVER

Silver appears to have developed a strong resistance area at 16.87 with price action piercing but unable, currently, to break through this area. The current candle indicates that there is significant selling pressure for the asset. However, given the trajectory of both MACD and RSI, momentum still appears to be bullish. It seems that the next candle which closes above both the support area at 16.87 and the 20-day exponential average will mark the start of a stronger, more significant uptrend.

GOLD

Gold has retraced from a downtrend in April. Price action has broken both the support line at 1243 and the 20-day EMA which suggests that near-term momentum is bullish. MACD appears to be turning more positive, however, RSI is fairly flat and volume appears to be dropping off. With no clear fundamentals to justify significant gold buying, the current uptrend may not be sustained.

AUD/CAD

The AUD/CAD has broken 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. However, the last couple of trading sessions have indicated significant selling pressure in the pair. MACD has broken the zero line and is turning more negative, RSI has a downward trajectory and volume appears to be sustained into the downward move. The question is whether this move marks the end of the longer-term upward trend.