Technical Analysis

Commodities Suffer After Hawkish F.O.M.C Statement

• 18 Jun 2018

EUR/USD

The Euro suffered a sell-off on Friday as the Federal Reserve eluded to further rate hikes during its recent statement. The pair has reached a recent support level and will likely remain in this trading range; between the 1.153 and 1.173 price level, however, fundamental factors later in the day may impact this price range.

Impact event: Mario Draghi will give a speech at 20:30 GMT+3 this evening and remarks will likely impact all Euro pairs.

USD/CAD

The USD/CAD uptrend continues as the U.S. Dollar was buoyed by increasing demand after statements from the Federal Reserve. The near-term resistance area is at the 1.308 price level. Momentum indicators suggest further upside with strong upward trajectories and volume has been climbing providing confirmation of rising Dollar demand.

SILVER

Silver continues its strong bullish run after a break of the descending trendline. In yesterday's trading, the pair spiked the 17.273 price level but rejected the resistance level to close below the 17.273 price line. MACD appears to be extending its move into bullish territory and volume is increasing into the move.

OIL

Oil has broken out of a symmetrical triangle pattern with downside momentum. The previous uptrend has been breached and the nearest support level for the pair is the 61.89 price level. Momentum remains bearish according to MACD and volume has leveled off.

GOLD

GOLD has also broken through a lower trendline as Dollar strength places pressure on the metal. The next price target for sellers is the 1267.38 price level. Momentum indicators confirm the bearish bias and volume has risen to support the move.