Daily Insights Report 27/06/17

• 27 Jun 2017

USD/JPY

The USD/JPY pair has spiked through a previous resistance level at 111.86 and if a full break of this level occurs (the current candle closes above the resistance line) the uptrend is confirmed. MACD has also just broken the zero line with an upward trajectory. RSI has flattened and is reaching the overbought area; however, there is still some room for further bullish momentum.

Impact event: Federal Reserve Chairman Yellen’s speech at 17:00 GMT+3 which will affect dollar pairs.

GOLD

Gold prices hit a one month low during yesterday’s trading session. Investors’ appetite switched to riskier assets and switched away from Gold as a safe haven asset. Asian markets were closed yesterday which added to the lack of demand from buyers. Gold broke the 20-day exponential moving average, yet there was some buying pressure still apparent. RSI has turned positive and MACD appears to have just broken the zero line (though is a lagging indicator). Gold, as always, will be led by fundamental factors, which do not appear to support the significantly bearish momentum.

Impact event: Federal Reserve Chairman Yellen’s speech at 17:00 GMT+3.

AUD/USD

The AUD/USD pair has broken a series of resistance levels at 0.756 and 0.757 and is heading towards an apparent market ‘top’ at 0.761. The three consecutive bullish candles may indicate a potential reversal of the current trend. Momentum indicators suggest that the trend could be losing steam with MACD flattening and RSI stalling near the 70 ‘overbought’ area. Volume has picked up in the last trading session after consecutive declines, indicating there is still room left for the bullish move.

EUR/USD

The Eurodollar saw a spike in buying pressure during yesterday’s trading session despite a significant drop in Gold prices. A risk-on appetite from investors led buyers away from the U.S. Dollar, yet the spike in price was soon dissipated with a rise in selling activity towards the end of the European trading session. Price action has broken above the 20-day EMA which is now acting as a support level for the pair. MACD remains in positive territory despite its downward trajectory. RSI is flat above the 50 support line and volume has risen for the current bullish trading session.