Daily Insights Report 25/05/17

• 25 May 2017

GBP/USD

According to the 4-hour chart, Price action has turned fairly bullish in the GBP/USD pair. The pair has broken the 20-period exponential moving average and MACD remains positive. However, volume has been dropping in the pair and the question is whether the trend can be sustained.

Impact event: Second Estimate U.K. Q1 GDP at 11:30 GMT+3. No change in the initial estimate is expected.

EUR/JPY

The EUR/JPY looks to be in a fairly marked uptrend. The pair has broken two resistance lines at 122.66 and 123.26 and price action continues to move higher. Further confirmation of the uptrend is the trajectory of the 50-day moving average and a potential bullish crossover of the 100-day moving average.  RSI has reached the overbought area and MACD has flattened, yet is still in positive territory.

GOLD

Gold prices have risen despite the fact that the Fed stated at the FOMC Meeting that a rate rise would be appropriate ‘soon.’ Price action for the metal remains bullish and is heading towards the 1268 resistance area. If it breaks this resistance line, the uptrend is confirmed. MACD has turned more positive and RSI has an upward trajectory although is heading towards the overbought resistance area.

USD/CAD

The USD/CAD pair has broken two support lines at 1.357 and 1.351 in the last 4-5 trading sessions. Further, there have been consecutive breaks of the lower Bollinger band. RSI has moved to the 30 support area and MACD has broken the zero line, turning more negative. Further volume has been increasing into the downtrend.