USD/CHF Falls

The USD/CHF has been falling for the rest couple of weeks as the pair reached the overbought level just a few pips above parity. The exchange rate fluctuated around parity for days before breaking the trend to the downside.

The pair is now trading at 0.9862 with a low of 0.9845. Next bear target could be the 50SMA standing at 0.9799, second target is the 200SMA which could present a challenge for the bears at 0.9706.

Major bear target is seen at 0.9200 which could come if the US economy worsens, the stock market sells off and the interest rate goes higher.

Chart: USD/CHF D1

GBP/JPY Moves Higher

The Sterling saw a massive drop in its recent trading session and only yesterday the UK currency gained a bit traction to recover some of the losses. GBP/JPY moved higher in the last two trading days going from a low of 143.20 to a high of 145.30.

Currently, the pair is trading at 145.06, slightly lower than today's high. The pair reached a strong support zone on Tuesday when it touched on the lower line of the ascending long term trading channel.

We are yet to see whether the support will hold as the short term trend is aggressively bearish, the MACD still has room to go and the 200SMA is way above current market price.

Chart: GBP/JPY D1

GBP/USD Aims Lower

The British pound has been depreciating against its peers recently as the UK economy has been posting lower than expected results as well as dovish tone from the BoE regarding future developments.

The GBP/USD exchange rate went as low as 1.3205 in yesterday's session and is now trading slightly higher at 1.3236 with intraday high of 1.3292.

If the Sterling continues its way South we can expect the pair to reach medium term support zone at 1.3070. If that level holds strong, bulls would have the chance to make a correction of the trend and end the aggressive downfall that started in mid April.

Chart: GBP/USD D1

EUR/USD Aims To Lower Grounds

The EUR/USD is now trading below 1.17 as selling pressure is pushing the exchange rate down. The strengthening of the US dollar is causing all other peers to depreciate resulting in high volatility swings.

The EUR/USD rate reached a low of 1.1606 and is now trading at 1.1629 as bears are still the dominating party. Immediate support rests at 1.1550 and if bears manage to break through it we can see further continuation of the downside move.

On the other hand, bulls might get motivated to buy the pair if it reaches the support zone and we could see a healthy pullback.

Chart: EUR/USD H4

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USD/JPY Higher

The USD/JPY pair is trading above 111.00, a level that acted as a resistance prior to breaking it. Now that level is a resistance turned support and next level the bulls need to conquer is the long term downtrend upper point of 111.90.

If that level is reached, we can expect a healthy pullback which would act as a correction to the solid US dollar rally against the Japanese Yen that started in the end of March from 104.65.

The pair is now well over the most important SMAs, namely 50, 100 and 200 but is yet to see the highs of the overbought levels in the MACD and RSI indicators.

Chart: USD/JPY D1

GBP/USD At 5 Month Low

The Sterling continues it's bearish run as the exchange rate GBP/USD has fallen below the 5 month level. The pair is now trading around 1.3400 marking a 14 cent depreciation in a little more than a month.

The drastic drop is due to a dovish UK tone regarding economics and even more of a reason, the strengthening of the US currency. The US dollar has been plowing through all major pairs making new highs.

According to some hedge fund managers and currency experts, the US dollar rally is far from over and we are yet to see it unfold.

Chart: GBP/USD D1

CAD/CHF Slightly Recovered

CAD/CHF reached its resistance point on Thursday last week when the exchange rate hit 0.7860. That was the result of a 3 month rally starting in the beginning of March from 0.7229.

Currently, CAD/CHF is trading at 0.7770, slightly recovered from its lowest on Friday which was 0.7720. If bulls keep on pushing to the upside, the pair would face the resistance again and in order for the bullish trend to continue the level of 0.7880 needs to be taken out.

Until then, the pair is in bearish territory and trend could be corrected to bearish at any point unless we can have major fundamental news that could shake up the pair.

Chart: CAD/CHF D1

Gold Below Support Level

Gold is now trading below the support level of $1,288 as the price of the precious metal has been slipping and sliding for the past month and a half. Gold reached it's highest high in the first third of April at $1,363 amid geopolitical tensions and uncertain outcomes.

Eversince, Gold has been dropping to current lowest low of $1,283 which was reached in the early trading hours of the European session today.

Gold broke the medium term support at $1,290 and now the way South is open as this medium term upper trend is broken.

If Gold continues to slide down the way bears could try to take it to the long term support level at $1,230.

Chart: XAU/USD D1

USD/CHF Refuses To Give Up

USD/CHF has been stubbornly refusing to go down despite being massively oversold during the past week. The exchange rate hovered around parity the whole week as indicators are flashing sell signals.

Most noticeably, the MACD and the RSI are now bearish as they have both crossed the overbought levels and have reversed from bullish to bearish.

The pair appears to be lagging behind the indicators which could be beneficial for traders who want to go contrarian and short the pair before the move has actually started.

If the bears are able to take control, they might bring the pair down to first support zone at 0.9720.

Chart: USD/CHF D1

GBP/USD Trading Below 200SMA

The GBP/USD pair is now trading below the 200SMA, which indicates that it is now in bearish market and could probably continue on its way down. As the US dollar is strengthening, all major pairs are being influenced and the Sterling is one of the biggest losers during this Greenback rally.

The pair depreciated from 1.4380 to today's low of 1.3464 in a matter of a month. The highest high was achieved in mid April. The pair might attempt to go higher from here as the MACD indicates that the pair is oversold and a correction might be due.

The RSI index also is flashing bullish signals as current levels are below oversold. We should continue to monitor the pair in order to have an idea where it could possibly go as it is yet early to give a specific prediction.

Chart: GBP/USD D1

USD/JPY Approaching 111.00

USD/JPY is now trading at 111.00 - a level that hasn't been reached since January this year when the pair was depreciating from it's high of 113.45. Currently, the exchange rate is trading at 110.97 and is already above the 200SMA, indicating that a move further to the upside is probable.

USD/JPY went as low as 104.58 in the end of March and is now steadily trading to the upside. However, it's important to note that the long term trend is still bearish and the pair might encounter strong resistance soon.

First bull challenge will be to take out the 112.00 level as it represents the long term downtrend resistance. Once this level is taken out, the pair might shoot up to 114.50.

Chart: USD/JPY D1

Silver Consolidated

Silver is having a time of narrow trading where the price has not been able to break through the triangle pattern. Instead, the trend is narrowing down into the three main MAs - 50, 100 and 200. With price below the 200SMA we can expect more to come to the downside as bears could put more pressure South.

Price reached a low of 16.00 a few days ago as a confirmation to the triangle pattern and is now trading at 16.43. Short term support is seen at 16.15. If that level is broken, the precious metal would breakout of the long term pattern and face more room to fall.

On the flip side, if bulls take control, Silver will see price appreciation to first bull target at 17.20. Over 17.20 the metal would be over the resistance and headed to higher grounds.

Chart: XAG/USD D1

USD/CHF May Have Broken

The USD/CHF pair has been going up for the last four months with just a few breathers only to continue on its uptrend with more power and a stronger momentum. The pair made a low on Feb 16th at 0.92 and it reached current top at 1.0050.

The pair is now trading at 1.0001 with a few intraday ups and down ranging between 10-20 pips. On the daily chart, as shown, USD/CHF appears to have found the top. It even took it a few days hovering at the top before the price broke to the downside.

USD/CHF was massively overbought and only now we are seeing some pullback. The indicators clearly show that the trend is starting to turn which could be a good time to enter short and enjoy the ride.

Still, be cautious of a probable bear trap which could be in the making.

Chart: USD/CHF D1

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GBP/USD Steady Before BoE Decision

The GBP/USD exchange rate is now hovering around the 1.3560 mark as volatility seems to be slowing down in anticipation of the latest BoE Inflation Report and Interest Rate Decision. Bank of England is expected to hold the rate unchanged which could deliver another blow to the Sterling and send it below the short term support of 1.3500 - 1.3460.

Leaving the rate unchanged at 0.50% will mean that people have no stimuli to hold their worth into the currency and would be better off looking for value somewhere else.

The decision will be made public in less that 5 hours and will most likely hint the long term direction of the UK currency.

Chart: GBP/USD H4

Euro Below The 200SMA

The Euro has plummeted below the 200SMA and below 1.1900 in a massive US dollar rally that has spread among the financial markets and is affecting every major currency. The Sterling, Swiss Franc, Japanese Yen are all making losses as the US dollar has been rallying for some 3 months now.

Euro dipped below 1.19 on Monday and has been trading in uncharted waters ever since. The choppy trading is the result of disoriented market participants who are weighing in on the options whether to sell the Euro now that it's trading below the 200SMA or to buy it as this is a strong support point.

EUR/USD bulls could hope to recover the gains this month as the pair is massively oversold as indicated by the MACD and RSI.

Chart: USD/USD D1

Gold Pressured by the Dollar

Gold is being put to yet another test on its way North as the US dollar is strengthening. The precious metal reached a high of  $1,319 in the early opening hours today and is now trading at $1,311.

The support at $1,300 was enough to ignite buying momentum by the Gold bugs but now it seems they are running out of breath as the bears are putting selling pressure on the Gold market as we are seeing the dollar making new highs against its peers, namely the Euro, the Sterling and the Swiss Franc, against which the US is now having its 3-month rally.

If the US dollar bulls run out of steam we could see market participants flock to the Gold market in search of safety.

No major news are scheduled this week which could turn the attention towards technical trading with low volumes.

Chart: XAU/USD H4

USDCHF Breaks Resistance

USD/CHF is now trading above parity for the first time since November 2017. The pair reached the milestone after an astounding rally that started in mid February when the exchange rate was 0.91 and very rapidly it appreciated to the highest high of 1.0055 just minutes ago.

If the USD bulls continue on their quest to new highs we could see the pair make another top at the next resistance level at 1.0080.

On the other hand, bears might muster up their strength and push the pair below parity if they get enough momentum to the downside.

Both the MACD and RSI are showing massively overbought quantities of the pair which suggests that there could be a downturn in the pair soon.

Chart: USD/CHF H4

USD/JPY Moves Higher

The USD/JPY pair is now trading to the upside as a continuation of the upward move that started a in the end of March. The exchange rate is now above the 50SMA and just took over the 100-day SMA. The next and most significant moving average is the 200-day which should come around 110.20.

If that level is taken out, bulls will have their clear target defined at 111.80-112.10. With the upcoming US Jobs data and NFP report we could see a sharp move to the upside provided the data is positive for the US economy.

Traders and investors might consolidate prior to the news release on Friday and volatility could return in the hours preceding the release as well as post-report.

Chart: USD/JPY D1

Silver Nearing Long Term Support

Silver is seeing depreciation in recent days due to a normalization in international relations between North and South Korea and the US. As the Korean leaders are reaching agreements on denuclearization, President Trump is planning a meeting with Kim Jong-un in two to three weeks.

All of this seems to be speaking comfort to investors who are now fleeing the precious metals market and going to currencies and equities.

Silver went from 17.30 to a low of 16.40 and is now gravitating towards the mids of 16. If the negotiations between the parties continue in the same friendly and feel-good manner, we could expect Silver to hit the long term support at 16 and possibly bounce back off that level as bulls initiate their buy orders.

Chart: XAG/USD D1

USD/CAD Could Hit Resistance at 1.3115

The USD/CAD exchange rate is hovering slightly above the 50SMA and well above the 200- and 100-day SMA. The pair is seeing optimism as the US dollar is strengthening against its peers. Major target for the US bulls trading the Canadian dollar is to reach the level of 1.3115.

That level is seen as the next bounce point in the pair and bears are expected to try and turn the trend. Should they fail, bulls will take it further to next inflection point at 1.33.

If bears succeed in their attempt, USD/CAD will turn the tide and try to pierce through the SMAs with major short term goal at 1.24.

Chart: USD/CAD D1