Are Precious Metals Beginning To Lose Momentum?

• 11 Sep 2017

GBP/USD

The bullish run for the British Pound may be coming to an end according to the daily chart. After several breaks of the upper Bollinger band, a bearish candle has started today’s trading session. RSI has also bounced off of the 70 resistance line. Moving averages and MACD indicate that sentiment is still somewhat bullish for the Pound with MACD on the verge of breaking the zero line to the upside. If the current session’s candles closes below 70 on the zero line- the downtrend is confirmed.

USD/CHF

The USD/CHF pair has bounced back from a market bottom at the 0.944 price level. The retracement has been defined by a break above the lower Bollinger band with a strong bullish candle. Further confirmation of bullish momentum comes from RSI where momentum bounced off the oversold 30 line to the upside. Volume has been climbing into the move suggesting strong conviction from buyers.

GOLD

Gold prices have surged in recent weeks, where prices have climbed almost 10% since mid-July. There are signs however, that a bearish reversal is imminent. Price action reached a market top at the 1359.35 price level. There has since been a drop in price to the 1337 price level, with RSI approaching the 70 overbought line after momentum broke above the resistance level. MACD has flattened above the zero line. A candle closing below the zero line on RSI would confirm the downtrend.

SILVER

Silver has the same trajectory as Gold with an apparent market top hit at the 18.09 price level. RSI has broken the 70 line to the downside and if the current candle closes below the 70 line, the downtrend is confirmed. MACD remains bullish but is a lagging indicator.