Daily Insights Report 07/06/17

• 7 Jun 2017

AUD/USD

The AUD/USD pair has crossed the 50-day simple moving average and appears to be heading towards the 100-day moving average. This indicates that momentum in the near-term is bullish. Price action has hit a previous resistance level at 0.754. MACD has turned more positive in the last 3 bars with the MACD line breaking above zero. RSI is some way off the overbought zone, so it appears that prices may go higher. After tailing off at the end of the last bearish move, volume has begun to rise significantly.

AUD/CAD

The Aussie Dollar appears to be gaining over many of its peers, with dominance over the Canadian dollar. Price action has broken both the 50-day and 100-day moving average. Additionally, a bullish crossover of the 50-day moving average over the 100-day moving average further confirms upward momentum for prices. MACD has turned more positive with a bullish crossover. RSI has an ascending trajectory.

Impact event: Canadian Building Permits data will be released at 15:30 GMT+3.

AUD/CHF

There is an interesting development for the AUD/CHF pair which has bounced off an apparent market bottom. The pair appears to be in a descending flag continuation pattern. However, price action appears to be close to the 20- day exponential moving average. If the pair can break this resistance level (currently at 0.727) it is a signal that the flag pattern has been broken. A bullish crossover on MACD indicates the upward momentum may continue which is further supported by an ascending trajectory on RSI.

SILVER

Silver has reached a significant retracement level at the 61.8 Fibo level at 17.66. The current candle is bearish which could confirm a bearish reversal after the metal retraced from a significant downtrend towards the end of May.  Confirmation will come from momentum indicators; however both MACD and RSI appear to have upward trajectories.