Precious Metals Take Centre Stage In Late Asian Trading

• 26 Feb 2018

GOLD

Gold has begun a bullish move after a period of bearish momentum. The metal has broken the 20- period EMA to the upside and is now testing the 1340.23  price level. A break of this price line would prove significant as it represents a previous resistance level. Buyers will likely target the 1354.43 which represents a strong resistance area for the pair. Momentum indicators support bullish sentiment.

Impact event: ECB President Mario Draghi speech at 16:00 GMT+2 may impact Gold.

SILVER

Silver has followed the same trajectory as Gold and has also begun a bullish move breaking the 16.67 price line and the 20-period EMA simultaneously. The next price target is the 16.84 price line. RSI has a strong upward trajectory and a momentum reversal has just taken place on MACD.

AUD/NZD

After a long run of bearish sentiment, the Australian Dollar appears to be beginning a reversal against its New Zealand counterpart. Strong bullish moves in the last two trading sessions have resulted in the pair testing the 20- period EMA. RSI appears bearish and a momentum reversal on MACD supports the bullish move. However, fundamental factors later in the day may play a role in near-term price direction.

Impact event: New Zealand Trade Balance data will be released at 23:45 GMT+2 and will impact all NZD pairs.

USD/CAD

The USD/CAD has begun to reverse a sharp bullish run and is now testing the 100-day moving average. A break to the downside suggests long-term sentiment for the US Dollar is bearish. RSI reflects bearish momentum with a downward trajectory.

Impact event: US Housing market data will be released at 17:00 GMT+2 and will impact all USD pairs.