U.S. Dollar Weakness To Start The Trading Week

• 9 Oct 2017

NZD/USD

After a sharp downtrend since mid-September, there are signs that the trend could be coming to an end. A bullish candle to start today’s trading session, after several breaks of lower Bollinger band, could signal a reversal. RSI has hit the 30 oversold line indicating further potential for a bullish reversal. Volume has been rising in the pair and buying pressure rose on Friday’s trading session. MACD still remains below the zero line, however, indicating there is still some bearish sentiment in the market.

GBP/USD

After breaking the 1.322 price level, the GBP/USD pair has continued to drop towards the 61.8 Fibo level before finding support. A bullish reversal seems possible given prices have started higher in today’s trading session and the fact that RSI appears to have bounced off the 30 support line. Volume has been rising in recent trading sessions indicating increasing interest in the pair.

EUR/CAD

The Euro appears to have gathered some moderate strength over the Canadian dollar in recent trading. Price action appears to be targeting the 1.471 price level after breaking the 20-period EMA.  Additionally, MACD looks to be approaching the zero line and a break would provide further confirmation for the uptrend.

GBP/CAD

A break of the 20 period EMA could signal a period of downtrend which was established by the break of the 1.662 price level. There is a question over whether the trend will be sustained, as momentum indicators suggest sentiment is bullish. The rising volume into the bearish break suggests strong appetite from sellers.