Precious Metals Reach Key Support Areas

• 1 May 2018

GBP/USD

The GBP/USD pair has entered into a long-term downtrend having broken the 100 day SMA. The pair has reached a significant support area at the 1.375 price level and a break would cement bearish sentiment. There is an imminent break of the zero line on MACD in support of the downtrend; despite RSI reaching oversold conditions, there appears to be further downside potential.

GOLD

Gold has reached a key support area at the 1310.13 price level, indicating a bullish reversal for the metal may be imminent. The metal has reached oversold conditions with price action continuously touching lower Bollinger band and RSI reaching the 30 support zone. MACD is on the verge of breaking the zero line, therefore the 1310.13 price level will prove to be a significant signal of future price action, with a break indicating bearish sentiment will continue.

SILVER

Silver is fast approaching a key support area at the 16.175 price level, however, there are signs that there will be further downside before an potential reversal. MACD is on the verge of breaking the zero line and RSI has a downward trajectory. Despite this, volume is starting to decline, which may suggest that sellers are losing conviction to drive price much lower.

USD/JPY

The USD/JPY pair has reached overbought conditions and appears to have stalled short of a key resistance area at the 110.208 price level. The pair has dropped back from the upper Bollinger area and is testing the 70 resistance line on RSI. Volume is declining which further suggests that buyers have lost dominance in the pair and will struggle to push prices higher.