Key Levels Are Tested In Asian Trading

• 5 Feb 2018

GOLD

Gold is testing the 20- period EMA to the downside as the metal appears to be at the beginning of a downtrend. RSI has a downward trajectory after hitting the 70 overbought zone. MACD has also begun a bearish reversal. Employment figures in the U.S. were better than expected which resulted in support for the U.S. Dollar, prompting a sell-off in Gold on Friday. Therefore, the near-term direction for Gold is likely to be determined by fundamental factors.

USD/JPY

The USD/JPY pair is testing both the 20- period EMA and the 110.47 price level. Clearly, a break of these two levels is significant and would provide weight to the uptrend. Momentum indicators are mixed, however MACD indicates that there is a momentum reversal.

Impact event: ISM Non-Manufacturing PMI data will be released at 17:00 GMT+2 and will impact all USD pairs.

GBP/USD

The GBP/USD pair has retraced from an oversold position. Several breaks of the upper Bollinger bands has resulted in a horizontal move for the pair. A recent break of the 70 line on RSI may mark the beginning of the downtrend.

SILVER

After breaking the 16.70 price level and the 20-period EMA to the downside, Silver prices have bounced back in a bullish direction to test the 16.70 price line once again. RSI indicates a bullish momentum reversal and MACD remains flat in positive territory. Fundamental factors are likely to come into play when determining near-term direction of the pair.