The Euro Struggles To Gain Traction

• 24 Jan 2018

GOLD

Gold has enjoyed an extended bullish run breaking above both the 50-day and 100-day moving averages. Despite the metal reaching overbought conditions, with RSI touching the 70 resistance line, bullish momentum looks set to continue. A bullish/golden cross of the 50-day SMA over the 100-day SMA looks imminent indicating further upside for Gold.

USD/JPY

Having broken the low price SMA and several support lines, the bearish momentum for the USD/JPY pair may be coming to an end. The pair has reached oversold conditions with RSI hitting the 30 support level. Current trading also shows a rise in buying pressure during the Asian session.

EUR/GBP

The EUR/GBP pair has hit a fairly significant price level at 0.8766. On several previous occasions, the pair has bounced back in a strongly bullish direction once the price line had been reached. On this occasion, however, momentum indicators suggest the bearish sentiment will continue, with a recent cross of the zero line on MACD. The next obvious price target is the 0.8730 price level which also represents a strong support line.

EUR/AUD

The EUR/AUD pair is testing the 1.535 price line after strong bullish momentum in yesterday’s trading. This price level appears to be a sticking point for the pair which has traded between the 1.522 and 1.535 price levels. MACD is fast approaching the zero line to the upside whilst RSI remains neutral, therefore near-term price action is likely to be driven by fundamentals.