Daily Insights Report 22/06/17

• 22 Jun 2017

GOLD

Gold has broken the 20-period exponential moving average; however momentum still remains negative according to MACD. The indicator does however, have an upward trajectory and RSI indicates that momentum has risen sharply in the last four trading sessions. For the uptrend to be confirmed, a break of the resistance level at 1256 is required. Otherwise, the downtrend is likely to continue.

EUR/USD

The EUR/USD did indeed break the 1.115 resistance area and the 20-period exponential moving average. The next significant resistance area is the 1.120 level and if price action is able to reach/break through this level, it will confirm the end of a fairly sustained downward channel. MACD has an upward trajectory but is still in negative territory.

USD/CAD

The USD/CAD pair has broken and bounced back from the upper Bollinger band. RSI has also bounced off the overbought area at 70 and has flattened. MACD has broken the zero line but appears to be falling off from the surge in positive momentum. The direction of the pair will be largely determined by oil prices, which hit a 10 month low yesterday after a rise in Crude Oil inventories.

Impact event: Canadian Retail Sales at 15:30 GMT+3.