Major Peers Pull Back Euro Gains

• 29 Nov 2017

EUR/GBP

The EUR/GBP pair has broken the 20-period EMA which has been acting as a support level in recent trading sessions. The next obvious price target for the bearish move is the 0.875 price level. MACD has appeared to be moving in a more bullish direction but is yet to break the zero line, indicating sellers may be dominating recent price action. A large spike in volume during the strong bearish move in yesterday’s trading session suggests strong appetite from sellers to push prices lower.

Impact event: German Harmonised Index of Consumer Prices data will be released at 15:00 and will impact Euro pairs.

EUR/USD

The EUR/USD pair is experiencing a slight pullback in an otherwise established uptrend for the pair. The pair has retraced to test 23.6 Fibo level as well as the 1.185 price line which represents a previous resistance level. The current trading session is seeing the 1.185 price level being tested immediately after yesterday’s bearish break. At the same time, MACD has broken the zero line to the upside with RSI confirming bullish momentum. Technicals aside, from a fundamentals perspective, it seems unlikely that the U.S. Dollar will gain any real strength against the Euro, hence a bullish reversal is indicated.

EUR/CAD

The EUR/CAD pair appears to be testing overbought conditions. Yesterday’s trading session resulted in strong selling pressure and a bearish move for the pair. Despite the bullish start to the Asian trading session, gains for the Euro appear to be diminishing. Simultaneously, RSI has reached overbought territory with a touch of the 70 line. A bearish reversal could be on the cards, however moving averages and MACD indicate that there is still some interest from Euro buyers, therefore a trend reversal may be slow to gain traction.

GOLD

Given the weakness of the Dollar it is hardly a surprise that Gold prices have been on the rise (as the two assets are inversely correlated). Gold remains in a moderate uptrend with further upside potential. MACD has just broken the zero line within the last four bars and RSI also has a moderate bullish trajectory. The next resistance line is the 1302.94 price level which represents the top of the asset’s most recent trading range.