Major Pairs Reach Key Breakout Area

• 6 Mar 2018

GOLD

A descending triangle on the Gold chart gives indication that near-term momentum is likely to be bearish. Currently the pair is testing the upper trend-line and is approaching the apex of the triangle. A breakout to the downside normally follows as the pair continues the downtrend. At the same time, MACD has just broken the zero line confirming bearish sentiment.

AUD/JPY

The AUD/JPY pair has begun a reversal after a large sell-off and has returned to close above the lower Bollinger band. At the same time RSI has moved from below the 30 support line, breaking to the upside. Both of these signs indicate a reversal is underway. A close of a candle above the 30 support level would confirm the reversal. A momentum reversal on MACD is also underway.

Impact event: RBA Governor Lowe will speak today at 23:35 GMT+2 and remarks will impact AUD pairs.

USD/JPY

The USD/JPY pair has entered into a distinct downtrend and given current policy conditions, will likely stay that way in the near-term. The pair however, has begun a partial recovery which it has done on several previous occasions. RSI has bounced back off the 30 oversold zone and MACD has begun a momentum reversal. The pair will likely only reach the trend-line which represents a strong resistance area, but in the meantime, momentum is bullish.

EUR/CHF

The EUR/CHF pair has broken the 20- period EMA to the upside with a strong bullish candle representing a spike in buying pressure. MACD has begun a momentum reversal and RSI has a clear upward trajectory.