European Currencies Active Ahead of European Session

• 13 Oct 2017

EUR/GBP

The EUR/GBP pair experienced significant selling pressure in yesterday’s trading session. As such, the pair is now testing the 0.892 price level and the 20-period EMA. Momentum indicators appear to contradict the bearish move in yesterday’s trading session, indicating sentiment is bullish. MACD is approaching the zero line and a break may indicate the bearish move was short-lived. RSI also has an upward trajectory.

GBP/USD

The GBP/USD has retraced from a previous bearish move, high selling pressure has pushed price action above the 1.322 price level, where the pair is now testing the 20-period EMA. The next price target for the bullish move should be the 1.338 price level. However, there are mixed messages from momentum indicators with divergence creating a environment of uncertainty. RSI has an upward trajectory whilst MACD has a sharp downward trajectory. A breakout is required to confirm near-term price direction.

Impact event: U.S. CPI data will be released at 15:30 GMT+3 and will impact all U.S. dollar pairs.

CHF/JPY

The CHF/JPY pair has broken below the 20-period EMA with MACD approaching the zero line as confirmation of bearish bias. Volume appears to climbing into the break, indicating interest is rising in the pair.

XAG/USD

Silver appears to be extending a bullish run, with a break of both the 17.11 price level and the 20-period EMA. Momentum indicators have an upward trajectory with a break of the zero line on MACD appearing imminent. One caveat, though, is that price action also appears to be approaching oversold conditions, therefore the current bullish sentiment may not last in the long-term.