Daily Insights Report 29/05/17

• 29 May 2017

GOLD

Gold has retraced from a marked downtrend since mid-April. Price action has hit the 61.8 Fibo level which can indicate a potential bearish reversal. Declining volume indicates that buyers may be losing steam. RSI is fairly flat with the MACD line remaining below zero.

AUD/NZD

The AUD/NZD pair entered into a significant downtrend midway through May. Sellers have dominated the last six trading sessions. However, the pair has broken the lower Bollinger band for the last two consecutive candles. Further, RSI has reached the 30 support zone which previously, momentum has bounced off and turned more bullish. The next support line for price action is 1.044; however, the question is whether a reversal will take place given momentum indicators.

SILVER

The Silver has reached the Fibo level and if price action can break this level and head to the 61.8 Fibo level, a bearish reversal may take place. MACD is in negative territory but does have upward trajectory. Volume indicates that the current trend may not be sustained for much longer. RSI appears to be flat.

EUR/USD

The EUR/USD pair appears to be trending around a previous resistance level having broken the level 10 days ago. Price action appears to be heading closer to the 1.114 level and if it can push through, a downtrend may become more significant. RSI is moving off the oversold area, however has bounced off this area several times before without a reversal. MACD appears to be turning less positive; however volume is declining.

Impact event: Mario Draghi speaks at 16:00 GMT+3. Comments from the President of the ECB can create significant volatility especially for the Eurodollar.