Major Pairs Have Reached Key Support Levels

• 9 Jan 2018

GOLD

GOLD appears to have reached a market top and is beginning a bearish retracement. At the same time, RSI has reached overbought conditions and volume appears to be turning less positive indicating more selling activity. Doji candles in the downtrend indicate relative indecision and the metal is someway from the 23.6 Fibo level representing a potential bullish reversal area.

USD/JPY

After a strong sell-off in yesterday’s trading session, the USD/JPY is close to a trend-line at the 112.36 price level. On previous occasions the pair has touched the trend-line and bounced back in a more bullish direction. However, there is space for further downside in the pair and volume and RSI have downward trajectories to confirm selling activity.

USD/CAD

The USD/CAD has hit a market bottom with a series of doji candles indicating a reversal. RSI has hit the 30 support level which suggests prices should rise from here. Momentum/Volume indicators suggest that sellers are beginning to lose steam. A bullish retracement is indicated with the next price target for buyers at ~1.2475 (23.6 Fibo level).

USD/CHF

The USD/CHF pair has broken the 23.6 Fibo level with volume and momentum indicators supporting the bullish move. Selling pressure has been increasing in the last two trading sessions, however, which may suggest that the previous bearish trend will resume soon.