The USD/JPY pair has broken the 113.54 price level to the downside and as a result, is heading towards the 112.82 support level. The break is representative of recent bearish momentum. A descending trendline may provide a resistance level for the pair, going forward. Momentum indicators are somewhat neutral with RSI stalling at the default line and MACD moderately bullish.
The EUR/USD pair has rebounded from the descending trendline once again indicating that this may be a new support area for the pair. A series of doji candles do indicate indecision and the pair may consolidate between the 1.129 and 1.142 price levels, in the near term. Momentum indicators appear bullish with both MACD and RSI forming upward trajectories.
Fundamental factors influenced the recent sell-off in the GBP/USD pair and these factors continue to put pressure on the Pound. The pair is consolidating mid trading range where the 1.269 price level remains the floor. Momentum indicators are moderately bearish with MACD remaining below the zero line and RSI approaching the 30 support level.
The USD/CHF pair has broken back below the 0.997 price level and given that price action has broken the descending trendline to the downside, momentum appears to be with sellers. Despite this, the 0.997 price level appears to be a sticking point for the pair. Momentum indicators have turned sharply bearish with MACD approaching the zero line and RSI breaking the default line.
The USD/CAD pair has broken the ascending trendline and is now testing the 1.316 price level. Given the trajectory of momentum indicators, the descent appears likely to continue. A break of the 1.316 price level would signify the end of the uptrend and a new trend forming.
Impact event: Bank Of Canada interest rate decision and subsequent press conference will take place at 17:00 GMT and will likely impact Canadian Dollar pairs.
Silver has rebounded from the 14.03 price level to maintain a recent trading range between the 14.03 and 14.91 price levels. The metal continues to test the 14.03 floor although buyers have returned to test the 14.41 price level. Momentum indicators have turned bullish and volume has climbed into the move.
Gold has once again undergone a bullish retracement from the ascending trendline to break the 1231.10 price level and is now approaching the 1241.48 price level. This price level, however, is a strong resistance area for the pair which has seen price action unable to break on several previous occasions. Momentum indicators appear to be turning more bullish.
Oil appears to have broken a descending flag pattern, with price action appearing to make a recovery after an extended sell-off. MACD appears to be undergoing a momentum reversal and RSI has begun an upward trajectory. Volume has spiked once again indicating plenty of interest in the commodity.