A Mixed Bag To End The Trading Week

• 2 Mar 2018

GBP/CHF

The GBP/CHF pair has broken the low price 14- period SMA to the downside off the back of heavy selling pressure. At the same time, a bearish momentum reversal appears to be underway on MACD. The pair is also testing a recent support area and if prices drop further, the downtrend is more significant.

Impact event: Both Prime Minister May and Governor Carney are due to speak today with Carney’s speech scheduled for 12:00 GMT+2, therefore all GBP pairs will be impacted.

EUR/GBP

The EUR/GBP has broken the high price 14- period SMA to the upside. At the same time, MACD has begun a bullish momentum reversal. A break through the current price level represents a break of a recent resistance area and provides further weight to the uptrend.

USD/CAD

A spinning top candlestick pattern after a significant sell-off in the CHF/JPY pair could be the first signal of a bullish reversal. The pair has hit oversold conditions on RSI however, MACD indicates momentum currently remains bearish.

Impact event: Canada GDP data will be released at 15:30 GMT+2 and will impact all CAD pairs.

EUR/AUD

The EUR/AUD pair has reached overbought conditions with two consecutive candles breaking the upper Bollinger band and RSI reaching the 70 zone. A doji candle in today’s session could mark the bearish reversal, however, MACD remains in positive territory. A break below the upper Bollinger band and a reversal on RSI would be required to exit any current buy orders for the pair.