Support Areas Being Tested At The Start of The Trading Week

• 2 Oct 2017

SILVER

The Silver daily chart shows the pair testing the 16.62 price level after a recent downtrend in the last week. MACD has also broken the zero line to the downside further indicating bearish momentum. RSI is approaching the 30 support area. If price action is able to break the 16.62 price level, the next target is likely to be the 16.19 price level.

AUD/USD

The AUD/USD pair is testing the 0.781 price level which represents a previous support level for the pair. MACD has broken the zero line to the downside with RSI flattening just above the 30 support level. Price action has not dropped below the 0.781 price level since July, hence fundamental factors will likely be required to play a part in pushing prices below this level. The RBA will announce their rate decision tomorrow which is expected to remain unchanged.

Impact event: ISM Manufacturing PMI data for September will be released at 17:00 GMT+3 and will likely impact all U.S. dollar pairs.

CAD/CHF

The CAD/CHF pair has broken both the 20-period EMA to the downside and the the 0.778 price level. Price action is now approaching the lower Bollinger band with MACD sharply heading towards the zero line.  RSI has also broken below the 50 support level indicating that momentum is bearish. However, volume appears to be declining indicating interest in the pair has tailed off.

GBP/USD

The GBP/USD pair has enjoyed a bullish run as a result of better than expected economic data despite the pending Brexit negotiations. The Pound appears to be retracing back from its recent highs and is now testing the 20-period EMA. A break of the MA will provide sellers with the impetus to push prices lower, towards the support area at the 1.322 price level. Momentum indicators suggest that sentiment has turned bearish.

Impact event: U.K. Markit Manufacturing PMI survey results will be released at 11:30 GMT+3 and will likely impact GBP pairs.