Markets Are Subdued At Close Of The Trading Week

• 25 Aug 2017

USD/CHF

The USD/CHF pair is testing the 20-period EMA with a series of doji candles forming indicating some uncertainty in the market. A spike in volume in today’s trading session suggests there is still significant interest in the pair. MACD appears to be supporting the positive sentiment, as it is close to breaking the zero line to the upside. RSI is flat at the default line. A break of the 20 -period EMA will make the 0.966 price level the next target. The EUR/GBP pair was supported by fundamentals in yesterday’s trading session.

Impact event: U.S. Core Durable Goods Orders will be released at 15:30 GMT+3 and will impact all U.S. Dollar pairs.

 EUR/USD

The EUR/USD pair has bounced off the the 20-period EMA and appears to be heading towards the next target at the 1.17 price level which represents a previous support line. MACD appears to be on the verge of breaking the zero line to the downside. RSI also has a downward trajectory. However, with volume declining, the question is whether the move can be sustained.

USD/JPY

The USD/JPY 1- hour chart indicates that the pair has entered into a uptrend, which has elements of a flag continuation pattern. Buyers appear to have reached a point of exhaustion as price action has moved sideways to start today’s trading session. Declining volume confirms the loss in momentum. Will the trend continue? RSI is approaching the 70 oversold level therefore there is a chance of a bearish reversal, yet MACD indicates that sentiment remains positive currently.

GOLD

Gold prices have moved above the 20-period EMA however, a break of the zero line on MACD will be required to confirm the uptrend. MACD has an upward trajectory and appears to be moving in a more positive direction. However, RSI is flat and volume has almost disappeared, indicating the metal will probably trade in range between the 16.90 and 17.04 price levels.