The U.S. Dollar Dominates In Asian Trading Session

• 6 Nov 2017

GBP/USD

After a huge sell-off resulting from the Bank of England rate hike, the pound has struggled to recover. Price action is now testing the 1.306 price line and a break of this level will determine future price action. Momentum indicators signal bearish momentum, both with downward trajectories. Declining volume also indicates waning interest in the pair, suggesting there may not be enough conviction currently for buyers to drive price action beyond the 1.306 price level.

EUR/GBP

The EUR/GBP pair is testing the 0.887 price level and the 20- period EMA. MACD remains below the zero line and RSI has flattened at the 50 support level. Strength of the Euro can be attributed to recent pound weakness, suggesting the recent bullish move was overplayed. It seems likely the pair will remain in the 0.874 – 0.892 trading range.

Impact event: Eurozone Producer Price Index data will be released at 12:00 GMT+2 and will likely impact Euro pairs.

USD/CAD

The USD/CAD pair is testing the 1.276 price level after reaching recent price high. However, momentum indicators are mixed, with RSI assuming a downward trajectory and MACD remaining in positive territory. Volume has also been declining into the move which suggest the CAD may not sustain its dominance over the U.S. Dollar.

Impact event: Ivey Purchasing Managers Index report will be released at 17:00 GMT+2 and will impact all CAD pairs.

CAD/CHF

The CAD/CHF pair has broken both the 0.778 price level and the 20- period EMA and is fast approaching the 0.786 price level. Bullish candle indicate strong upward momentum which is not echoed by momentum indicators. MACD has recently broken the zero line after a long, sustained downward trajectory and RSI remains flat at the 50 support level. Declining volume further indicates the CAD strength may not be sustained.