Bullish Momentum Continues For Precious Metals

• 14 Feb 2018

GOLD

Gold continues its upward trajectory with a break of the 20- period EMA and is approaching the 1340.52 resistance level. Clearly, a break of this price line would provide weight to the uptrend. Momentum indicators confirm that sentiment is still bullish and RSI highlights further upside potential for the metal.

EUR/USD

The EUR/USD pair appears to have resumed an uptrend after a slight pullback. The pair has broken the 1.226 price line to the upside as well as the 20- period EMA and is now approaching a market top at the 1.249 price level. Momentum indicators support bullish price action.

Impact event: Eurozone GDP data will be released at 12:00 GMT+2 and will impact all Euro pairs.

SILVER

Silver is testing the 50- day SMA with a potential upside break. RSI is recovering from an oversold position and has a sharp upward trajectory. MACD has moved into bearish territory however, is a lagging indicator and may not fully represent sentiment. A break of the 50-day moving average would indicate conviction from buyers to move price action higher.

USD/JPY

The USD/JPY has entered into a marked downtrend. Although there is no question of the overall trend, there appears to be a potential bullish retracement. The pair has reached oversold conditions, with a break of lower Bollinger band and RSI has hit the 30 oversold zone. Each time this has happened on previous occasions, the pair has bounced back in a bullish direction. A momentum reversal on RSI would be required to signal a potential retracement for the pair.

Impact event: U.S. CPI and Retail Sales data will be released at 15:30 GMT+2 and will impact all USD pairs.