The mounting concerns over the unquantifiable impacts of a Brexit to the UK economy have left the Sterling vulnerable, with the GBPJPY showing signs of weakness during trading on Monday. This pair has always remained bearish and a breakdown below 160.00 may open the gates for a steeper decline towards 156.00 and potentially lower. Prices are trading below both the 20 and 50 SMA while the MACD has also crossed to the downside. As long as the candlesticks can keep below the new lower high of 164.00 this bearish daily outlook remains valid.
This pair is under immense pressure and remains heavily bearish on the daily timeframe. There have been consistently lower lows and lower highs while the MACD trades to the downside. Prices are trading below the 20 SMA and this momentum may drag the pair lower towards 1.2850. With the Canadian Dollar appreciating as expectations heighten over oil prices finding a bottom, bearish investors should receive ample encouragement to send the USDCAD towards 1.2850 and much lower.
Dollar vulnerability looks to be one of the main driving forces which has sent the USDCHF to levels not seen since 2015 at 0.9650. This pair is heavily bearish on the daily timeframe as there have been consistently lower highs and lower lows, while the MACD trades to the downside. Previous support around 0.9750 may act as a dynamic resistance for a further decline towards 0.9500. A bullish move and daily close back above 0.9800 suggests bearish weakness and places this setup on standby.
Silver has surged to fresh 5 week highs on the back on Dollar vulnerability and may be set to incline further as expectations rapidly diminish of further US rate rises in 2016. We have been bullish on Silver for an extended period and with last week’s target of $15.90 being hit, the next major resistance level is based at $16.30. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD trades deep into the upside. Previous resistance at $15.90 should act as a dynamic support for a potential incline towards $16.30.
The USDMXN is technically bearish on the daily timeframe as prices are trading below the daily 20 SMA while the MACD has crossed to the upside. A solid breakdown below 17.40 should encourage bearish investors to send the USDMXN lower towards 17.00.
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