Daily Insights Report 23/06/17

• 23 Jun 2017

USD/JPY

The USD/JPY pair appears to be trading in range on the 1 hour chart. The longer-term direction of the pair is unclear; however, momentum indicators may give some clues. Price action has broken the 100-period moving average and is testing the 50 period moving average. A bearish crossover of the 50-period moving average suggests that near-term momentum is negative. Price action has broken both moving averages recently but the move was not sustained. If price breaks the 111.23 area, the downtrend may continue.

GBP/USD

The GBP/USD has touched and bounced off the upper Bollinger band. There is some support at a previous resistance level at 1.270. If price action is able to break through this level it will likely continue to the next support level at 1.268. RSI has also bounced back from an overbought area.

Impact event: Markit Manufacturing and Services PMI data at 13:45 GMT+3. New Homes Sales data at 14:00 GMT+3 will also likely affect dollar pairs.

USD/CAD

The USD/CAD pair has reached a significant support area at 1.321 level and if it breaks this area, price action may continue to the 1.320 support level. A bounce back from the 1.321 support level could mark the end of the recent strong bearish move. A confirmation of the reversal will come from momentum indicators with MACD flattening well below the zero line and RSI running flat along the 30 support line. Volumes are low indicating sellers have lost steam, yet there is still low appetite from buyers.

Impact event: Canadian CPI data at 12:30 GMT+3.

NZD/USD

The New Zealand Dollar appears to be gaining strength over the US Dollar in recent trading sessions. Having broken the 20-period exponential moving average, the move has also seen price action move through a previous resistance area at 0.7270. Price action appears to also be testing the next resistance level at 0.7274 and if it breaks, price action could continue further to the 0.7291 level. However, RSI appears to be reaching overbought conditions. MACD remains positive and volume appears to be rising.