Precious Metals Beginning A Reversal?

• 8 Jan 2019

USD/JPY

 

 

The USD/JPY pair has made a recovery from a sharp sell-off last week. The 108.73 support level continues to be tested with a break indicating a full reversal. Momentum indicators have stalled in bearish conditions with RSI testing the 30 support level.

 

   

 

 

EUR/USD

 

 

The EUR/USD pair has once again bounced back from the ascending trendline with bullish momentum. The 1.145 price level represents a key resistance line for the pair and the most recent break has been met with an increase in selling activity. Momentum indicators have turned bullish with MACD breaking the zero line. 

 

 
 
 
 GBP/USD

 

 

The GBP/USD pair has also made a recovery from the sell-off last week and has broken the 1.269 price level. In recent trading, the pair has struggled to move beyond this key resistance area. Momentum indicators have maintained an overall upward trajectory with MACD approaching the zero line. 

 

 

 

 

USD/CHF

 

The USD/CHF pair has dropped back to the 0.978 support level after repeated tests of the 0.986 price level. There is an overall longer term descending trend forming. Momentum indicators are neutral if slightly bearish with RSI bouncing along from the 30 support level.

 

 

 

 

USD/CAD

 

 

The USD/CAD pair has pulled back from a long-term uptrend and as a result has broken both the ascending trendline and the 1.334 price level. Momentum indicators also reflect the bearish sentiment; with MACD undertaking a momentum reversal and RSI following a sharp downward trajectory.

 

 

 

SILVER

 

A series of doji candles represents indecision as Silver struggles to break through the 15.69 price level. A reversal may be imminent as selling pressure appears to be rising. Momentum indicators also indicate a reversal is likely with a MACD stalling in bullish territory, however, RSI has pulled back to test the 70 resistance level. 

 

 

 

 

GOLD

 

 

Gold has also pulled back after an extended rally took price action towards a price high of 1303.94. A bearish candle followed by selling pressure may be the first signs of a reversal. RSI has pulled back to test the 70 resistance area and MACD has flattened in bullish territory. 

 

 

 

 

OIL

 

 

WTI buyers appear to be attempting another recovery as price action climbs towards $50 per barrel. Momentum indicators have begun a moderate bullish reversal, despite selling activity rising. How long the rally will last remains the question; momentum indicators suggest that favour lies with buyers.