Gold And The Euro Take Centre Stage

• 13 Feb 2018

GOLD

Gold appears to be resuming a previous bullish run after a mild retracement which began in mid- January. After hitting the 38.2 Fibo line, the pair has bounced back and may be beginning a bullish reversal. The metal is also testing the 20- period EMA and a break of this level would indicate strong conviction from buyers. RSI has an upward trajectory which provides support for the uptrend.

USD/CAD

The USD/CAD pair has broken the 1.256 price level which represents a previous resistance level. As a result, the pair has stalled with a series of small body candles. A momentum reversal is underway on MACD in support of the bullish move and there appears further upside potential according to RSI. The next price target for buyers is the 1.266 price line.

EUR/JPY

The EUR/JPY pair has broken both the 50-day and 100- day SMA to the downside, which is a clear, long-term bearish signal. Simultaneously, MACD has begun a momentum reversal which indicates bearish sentiment. RSI has a downward trajectory, but indicates there is still room for further downside for the pair.

EUR/GBP

The EUR/GBP pair has broken both the 50- day and 100- day SMA as well as the 0.885 price line. MACD is on the verge of breaking the zero line to the upside and RSI has an upward trajectory. The next price target is the 0.890 price level and if buyers are able to push beyond this level, the uptrend is confirmed.

Impact event: U.K. CPI data will be released at 11:30 GMT+2 and will impact all GBP pairs.