Long Term Bullish Momentum For The Australian Dollar?

• 28 Aug 2017

GBP/USD

The long-term outlook for the British Pound appears to be bearish. Price action has bounced back from a bullish retracement from the 23.6 Fibo level, with the 20-period EMA also acting as a resistance level. RSI has a downward trajectory and MACD remains well below the zero line, however, is moving into less negative territory. A break above the 23.6 Fibo level or the 20-period EMA would be required to initiate a change in direction for the pair.

 AUD/CAD

The monthly chart for the AUD/CAD highlights an ascending triangle chart pattern. This pattern is regarded as a bullish continuation pattern, to carry on a bullish trend. MACD has recently crossed the zero line to the upside to support bullish momentum. However, a spike in volume is required to confirm a ‘breakout’ which should turn prices higher. Price action may hit the lower trend-line, currently at the 0.989 level, before a break occurs. There have been two previous occasions when price action has bounced back from hitting the trend line.

AUD/USD

The AUD/USD monthly chart shows the pair trying to break out of a trading range between the 0.701 level and the 0.792 price level. Price action appears to have found resistance at the 0.792 price level which represents a previous resistance line. RSI has a downward trajectory and MACD remains negative but is approaching the zero line. The next support level is at the 0.767 price level. For the uptrend to be confirmed, a full break of the resistance line and break of the zero line on MACD is required.

GOLD

Gold prices are also testing a resistance line at the 1287 price level. RSI has an upward trajectory and MACD has flattened against the zero line. A break of the 1287 price level may send prices to the 1355 price level. Volume has remained steady into the move, however has dropped of since the start of the year when the bullish move began. Strong fundamentals news will be required to push price action above the 1287 price level, otherwise price action will most likely oscillate in range.