Daily Insights Report 07/08/2017

• 7 Aug 2017

USD/JPY

The USD/JPY pair has been in a downtrend for the last month, however there looks to be a stall in the trend. Price action remains below the 20-period exponential moving average, yet is testing the 110.74 price level which represents a previous support for the pair. In recent trading sessions, the pair has tested and rejected the 110.74 price level and if the downtrend continues, the next likely target is the 109.25 price level. MACD remains below the zero line and RSI is flat just above the 30 oversold zone. Volume is declining which may indicate a lack of conviction from buyers to really push prices higher.

GBP/USD

The GBP/USD has broken the 20-period exponential moving average which has been acting as a support level for the pair. However, immediately after the break, there has been some revival of bullish momentum. If the break continues, the next price target for the pair is the 1.29 price level. Momentum indicators are mixed; with MACD remaining above the zero line in strongly positive territory with RSI flat against the 50 support line.  The pair has been in an bullish flag continuation pattern, therefore a clear break of the moving average is required to confirm the downtrend.

SILVER

Silver prices have broken both the 20-period exponential moving average and the 16.38 price level. If the asset is able to sustain the break of the 16.38 price level Silver price will likely continue to fall towards the 15.54 price level. However, price action has only sustained a break of the 16.34 price level once in the last 4/5 months. Additionally, MACD has broken the zero line to positive territory indicating that sentiment has turned bullish. RSI has flattened just above the 30 oversold zone indicating there is still some room for the downside move.

AUD/USD

The AUD/USD pair has broken the 23.6 Fibo level, yet has returned with a bullish candle in today’s trading session. Price action appears to also be approaching the 20-period exponential moving average. The pair appears likely to retrace more before any bullish reversals as highlighted by momentum indicators. MACD has turned towards the zero line with MACD moving away from the 70 overbought area. Volume has been rising into the bearish move.