Daily Insights Report 08/06/17

• 8 Jun 2017

EUR/AUD

The EUR/AUD pair has crossed the 20-day exponential moving average to the downside. Price action has also broken a support level at 1.496 indicating some conviction in the bearish move. MACD has turned negative in the last 4 bars and this coupled with a bearish crossover of the MACD line. RSI is testing the 50 support line and f it breaks this level, it is further confirmation of the downtrend.

Impact event: Eurozone GDP data will be announced at 12:00 GMT+3.

USD/CAD

The USD/CAD pair appears to be in a downtrend and currently, the 20-day exponential moving average is providing a resistance for the pair currently. Price action has bounced of this level (currently at 1.351) once before and appears to be doing so during the current session with a bearish candle representing dominance of sellers. RSI has flattened below the 50 resistance level. MACD is still in negative territory albeit less so for the last few bars.

Impact event: Bank of Canada Governor Poloz speech at 18:15 GMT+3.

GBP/JPY

The GBP/JPY pair has broken the 50-day moving average again, with the previous break being held up and retraced from the 100-day moving average, which appears to be a support area for the pair. Momentum, however, appears to still be bearish with MACD crossing the zero line and RSI has a sharp downward trajectory. If price action can breakthrough and close below the 100-day moving average, the downtrend becomes more significant.

AUD/CHF

The AUD/CHF pair has broken the 20-day exponential moving average (EMA), however, the pair appears to be in a descending flag pattern, indicating that prices may snap back and head lower. A full break (candle closing above) the EMA will confirm the uptrend. Momentum indicators suggest prices could go higher with a bullish crossover on MACD where momentum has turned more positive. RSI has an upward trajectory, however, remains below the 50 line.

Impact event: Swiss Consumer Price Index data will be released at 10:15 GMT+3.