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

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/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

GBP/CAD At Support

GBP/CAD is now trading near short term support level at 1.7083. The pair went as low as 1.7060 before the bulls jumped at the chance and went long it. It's worth noting that the pair has not yet achieved a double bottom in accordance with the previous low at this level in the end of May.

It would be best to wait for a clear double bottom before opening long positions. However, chances are that this week is bound to be volatile-heavy for the pair as we are yet to see Thursday's news impact on the Sterling.

Bank of England will release the Inflation report along with the Interest rate decision which is expected to rise with 25 basis points from 0.50% to 0.75%.

Chart: GBP/CAD H4

CHF/JPY Moves Lower

CHF/JPY is trading down this week as the pair moved from its high of 113.24 on July 17 to yesterday's low of 111.50. The pair is now gravitating towards the lowest point reached yesterday, currently trading at 111.64.

If bears continue to pressure the pair they may persuade the bulls to give up for a while until first support level on the short term is reached at 110.60. Second support is seen at 109.50.

On Tuesday next week the BoJ will hold a press conference and announce the updated monetary policy statement. The event will be anticipated by traders and thus it is very likely that CHF/JPY will be affected in either ways.

Chart: CHF/JPY H4

Gold Consolidates

Gold is now trading at $1,224, it appears that it will close the week with little to no change. Gold opened trading around $1,228 on Monday and went as low as $1,218 on Tuesday morning. Market participants seems to be holding onto the safe haven asset without any expectations to turn a quick profit.

The stagnation in price is due to no attention to the market this week as we are light on events and happenings that can cause volatility and assets to change hands.

Next week, however, the schedule is tight with news releases coming out of Japan, the European union, the United Kingdom and the US. Traders and investors are expecting prices to go on their usual swing during such market movers and Gold will not be on the sideline.

Chart: XAU/USD H4

USD/CAD Breaks Support

USD/CAD is trading lower today after it broke the support line yesterday in the early European trading hours. The pair went from 1.3150, which was seen as the short term support zone, to today's low of 1.3025.

Currently, the pair has improved a bit and it's trading around 1.3040. The short term trend remains bearish as market participants are eyeing next support level at 1.2940-1.2910.

This week has no significant US or CAD data and therefore we might expect the pair to trade sideways to negative.

Long term trend remains strongly bullish as price is in an uptrend for the past 3 years.

Chart: USD/CAD H4

USD/CHF Drifts Lower

The USD/CHF pair is hovering around the support level at 0.9950 to 0.9910. Recently, the pair has been trying to break the parity level to the upside but so far attempts have proved to be unsuccessful. The exchange rate reached 1.0037 last week only to give in to bearish pressure and move lower.

The pair is now at inflection point when market participants need to decide whether it breaks the support at current market price or it pushes higher based on technical for the lack of strong fundamentals.

This week is low on fundamentals, so if there isn't a strong enough drive for technicals, the pair could be expected to consolidate until significant US news shake the market again.

Chart: USD/CHF H4

USD/JPY Above Bearish Channel

The US dollar has been strengthening against the Japanese Yen for the past few months. Starting in March, the USD/JPY exchange rate went from 104.00 to last week's high of 112.78. The long term bearish channel was broken last week at 111.00 and now the pair is painting a new beginning.

Above bearish pressure, the pair is now exposed to new highs starting with first resistance at 113.50. If that level does not break, we will see a double top with the last high before the final slip to latest low.

This week is packed with significant news as we have two testimonies by Fed Chair Powell on Tuesday and Wednesday as well as Building permits and Philadelphia Fed Manufacturing Index.

Chart: USD/JPY D1

GBP/JPY Higher

The GBP/JPY pair is trading at 149.00 as it has been on an uptrend since the beginning of July when it was below 145.00. The Sterling is seeing some inflows of capital as traders and investors saw an opportunity to buy at low levels due to economic uncertainties and political spats.

If the pair continues on its uptrend, we could see it reach the resistance level which falls at 150.00. This would mark the third touch of the downward trading channel started in early February this year.

Technically, the pair is still in a downturn and it will take some muscle to break through it. If we can get passed the resistance at 150.00, bulls might pour in new capital to fund the continuation of the appreciation of the Sterling against major currencies, JPY included.

Chart: GBP/JPY H4

 

USD/CAD Upside Momentum

The US dollar has been strengthening against major currencies, most obviously to the Canadian dollar. The USD/CAD pair reached a high of 1.3380 at the end of June and is now trading around 1.3200. The exchange rate has been trading steadily to the upside since the beginning of the year when it was floating around 1.2250.

The strong momentum is both due to fundamentals and technicals. Fundamentally, the pair has been enjoying solid support by strong US economy, low unemployment data and raising rates.


Technically, we had a few successful support level tests during the year which boosted the pair to its highest high.

First support level is seen at 1.3100 while first resistance level is seen at 1.3380.

Chart: USD/CAD H4

USD/CHF Consolidates

USD/CHF has been consolidating around parity level. The pair is now trading at 0.9946 and it seems ready to re-test the previous high of 1.0050. If that level is broken, we could see another leg to the upside with potential target at 1.0350.

The US dollar has been strengthening lately and traders and investors are pushing aside other currencies like the Euro and Sterling as well as safe haven assets like Gold and Silver.

This rush to the Greenback could be the result of easing the tariff tensions and bringing back the certainty and optimism to the US economy. However, it is still early to draw the line and go long equities and US dollars so it would be best to wait for more clarity and mutual agreements between the US and China.

Chart: USD/CHF D1

Gold Higher Amidst Trade Concerns

Gold is trading higher in today's session just less than an hour before the opening of the US session. The precious metal went to a high of $1,265 earlier today and gave away some its gains to currently trade at $1,263.36.

Gold reached a strong support level on the long term at $1,237 earlier this month and market participants quick to get a hold on to the safe haven as trade concerns started looming last week.

If Gold continues on its way north, we can expect to see first resistance level at $1,280. If that level is broken, second resistance level is seen at $1,310 - a double top after the psychological $1,300 level.

This week is lighter on events and so we can expect smooth sailing based predominantly on technicals.

Chart: XAU/USD H4

EUR/JPY Moves Higher

The EUR/JPY pair broke the resistance level at 130.00 and is now trading at 130.20. The pair is trading in a short term bullish direction but still remains pressured by bearish sentiment in the medium and long term perspective.

As trade fears become a significant factor in the financial markets stage, traders are turning from the unsafe US dollar to its major counterpart the Euro and the all time safe haven asset - Gold.

EUR/JPY moved from a low of 124.65 to its current high in a bit more than a month and it's now beyond the bearish resistance. If it continues to trade to the upside we can see a double top at 133.50 before long.

Chart: EUR/JPY H4

USD/CHF Drifts Up

USD/CHF has been moving to the upside for the last month marking a choppy trading behavior from 0.9790 in the beginning of June to 0.9918 made last week. The pair is now trading at 0.9925 right at the support line that took place in the end of March.

The pair is now testing the support line and if we have a confirmation, bulls will initiate another buying wave to possible first target of 1.0037 or at least the psychological level of parity.

It is still not clear whether the support will hold as we are yet to see the latest NFP and Jobs data later today. If the data is negative, bears will most certainly sell a significant amount of US dollars thus breaking the support line. Until the data release, consolidation might be expected.

Chart: USD/CHF H4

EUR/USD Higher

The EUR/USD pair is trading higher in today's session just a few hours before the opening of the US trading session. The pair reached a low of 1.1530 yesterday and since then it's climber up to 1.1653.

The pair is still in bearish trend as it would take strong EU fundamentals in order to break the predominantly bearish sentiment over the pair.

First bull target is seen at 1.1712 which would mark a double top on the short term. Second bull target is seen at 1.1900 and major target is the breakout of the bearish trend at 1.2250.

No major news are scheduled to today so we could see mostly technical trading.

Chart: EUR/USD H4

Silver At Support

Silver has reached the shore at 16.15, the long term support of a trend that started in the end of 2015. As the precious metal is testing the support now, market participants are eagerly waiting to see whether it will break it or bounce off of it.

It's worth noting that the precious metal has already gone below the most important SMAs - 50, 100 and 200. And now it's being held by immediate support. If Silver breaks the 16.00 level we would have a confirmed breakout and a potential continuation of the downfall in price.

There are no major US news coming out this week so market participants would more likely be focused on technicals rather than fundamentals.

Chart: XAG/USD D1

USD/CAD Close To Resistance

USD/CAD has been trading to the upside for the first half of this year as we saw a massive move north starting in the end of January. The pair was trading at 1.2250 at its lowest for the year right before it started its way up.

Currently, USD/CAD is trading at 1.3300 as market participants are still optimistic about the strengthening of the US economy.

Bear in mind that although the strong US fundamentals paint a rather pretty looking picture, the market is moved not by past events and scenarios but by the hopes and fears of the market players. In this light, it pays to be cautious in times when others are greedy.

Chart: USD/CAD H4