USD/CHF Consolidates

The USD/CHF pair has been heavily consolidated for the last month when the pair entered trading in the range of 0.9980 and 0.9850. The pair has gone out of the consolidation pattern twice, once to the downside with a low of 0.9787 and once to the upside with a high of 1.0066.

Currently, USD/CHF is back into the pattern and is trading at 0.9916. Market sentiment for the pair is neutral thus causing the pair to trade sideways without significant events or news that could shake the market and possibly give us a direction.

It's still undecided whether market participants will keep on buying the US dollar in light of its recent rally or they will choose the more stable Swiss franc.

Chart: USD/CHF H4

Silver Closing in on Support

Silver has been trading to the downside for the last month and moreover, it's been depreciating on the long term since mid-2016 when it reached a high of $21. The recent downtrend began in the middle of the last month at $17.30 and yesterday the precious metal reached the lowest low at 14.95.

Silver is now gravitating towards support level between 14.90 and 14.70. If those support levels are broken, 14.55 is seen as the next one and the major support is seen at the Dec 2016 low at 13.63.

Currently, the US dollar is having a rally against major peers and investors feel secure to divest of Gold and Silver for the highly regarded Greenback.

Following developments next month could give us key insights regarding the direction of the precious metals.

Chart: XAG/USD H4

Gold Moves Lower

Gold is trading below the psychological $1,200 level today as market participants boosted the price of the US dollar. Currently, Gold has recovered a bit and is trading at $1,201, with a low of $,1194 earlier today.

The depreciation in the Gold market is expected by market analysts as we are anticipating another rush to US dollars in the mid of strengthening US economy. If that is the case, Gold could go further down and test the lows all the way to $1,120 and, according to some, $1,000.

If, however, the US economy comes to a halt and the Greenback depreciates we could see a quick turn of events in the Gold market and a renewed interest in the safe haven.

Chart: XAU/USD D1

USD/JPY Backed By Support

USD/JPY went as low as 110.15 in the early trading hours of the European session today. Bulls, however, were quick to buy the dip as it just touched upon the support line on the medium term ascending trading channel.

Currently, USD/JPY is trading at 110.75, as the Yen is depreciating against major currencies. If the bulls could keep the momentum going, we could see first bull target at 112.30 this week.

On the other hand, Japanese bulls might not be yet ready to admit defeat and we could see the pair do another leg down below the support at 110.10. If that happens, major bear target will be seen at 106.00

Chart: USD/JPY H4

Silver Moving Sideways

Silver is trading sideways today as it has been doing for the last three months. Currently, the precious metal is trading at 15.50 as it has consolidated in the range of 15.70 to 15.20. No major news are expected this week except manufacturing production, but this most likely will not have a direct and significant impact on the pair.

Silver needs to break either side of the consolidation before we can conclude a definite move. Short term trend is bearish to neutral while on the long term silver is performing in the negative territory, gravitating towards a one year low at 15.10.

In light of this, 15.10 is seen as major support to the downside and a good long entry, while resistance on the short term is seen at 15.70, which is the upped end of the consolidation pattern.

Chart: XAG/USD H4

GBP/CAD Making New Lows

The Sterling is having a rather bad week as the single UK currency is taking a beating by its counterparts. While a cheap currency might favor export costs, weakness in a currency is a sign of weakness in the economy.

So far, the Brexit hasn't been panning out nicely for the UK but this might change as new opportunities arise.

GBP/CAD is close to its lowest low which came as a post Brexit sell off result. The pair is now hovering around 1.6800 as the lowest low is waiting at 1.5767. If the UK economy continues to release weak data we could see the low levels again before year end.

Chart: GBP/CAD D1

CHF/JPY Consolidates

The CHF/JPY exchange rate has entered into consolidation on the medium term scale as the pair is now trading at 111.76. The exchange rate has been trading at a zig-zag pattern since mid July when the pair tried to break the 200SMA to the upside but was unsuccessful as traders took it down to the 50SMA at 111.46 and then back again close to the starting point at 113.15.

Bears seem to have taken control once again over the pair as it's moving down today from a high of 111.90.

Main bear target is seen at 110.00 - 109.80, while second and third targets rest at 108.48 and 107.68 which would both make double bottoms in accordance with previous lows.

Chart: CHF/JPY D1

Gold Sell Of on Hold

The sell off in the precious metal has been somewhat troublesome as Gold has been going through support zones and SMA levels without a sign of a halt. Currently, Gold is seen to be taking a breather from the steep downfall at its current market price of $1,210.

The precious metal dipped to $1,204 last week and market participants were quick to get their longs as it went right to the previous low made in July 2017.

The precious metal is facing a dilemma now whether to continue its short term trend to the downside or move up using the support level with increased momentum and trust. Some experts are already eyeing the $1,000 level amidst a stable US economy and healthy signs of growth.

Chart: XAU/USD D1

GBP/AUD Falls Below Support

The GBP/AUD pair is now trading below long term support as it broke the support level at 1.7733 which also collided with the 200SMA serving as another tool to sustain the upside momentum of the pair.

However, market participants were eager to sell the pair breaking both the 200SMA and the support line. Currently, GBP/AUD is trading at 1.7530 and it seems that it's going to go for the next support level at 1.7400 which would create a double bottom.

The Sterling is depreciating against all counterparts in the early trading hours of the European Monday session. No major news are scheduled for today so we could see a continuation of trading based on technicals.

Chart: GBP/AUD D1

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EUR/CAD Sell Off

EUR/CAD has been trading to the downside for the past three days as the pair is going through a heavy selling wave. The short term momentum implies that the exchange rate will continue to trade lower as market participants are aiming towards the support level on the medium term at 1.5000.

The pair has other indications of a bearish market, namely the main moving averages and the fact that EUR/CAD is trading below them. Last week the pair went below the 200SMA and now the three of them, 50, 100 and 200SMA are gravitating above the exchange rate.

If EUR/CAD can reach the support level we could expect strong bullish reaction in the initial time as an attempt to buy at the bottom and potentially reverse the trend. On the long term, however, the pair is still making good bullish steps.

Chart: EUR/CAD D1