Bullish Reversal Is Underway For USD/CAD
- July 10, 2019
The USD/JPY pair has broken the descending trendline and the 108.54 resistance line, as US Dollar buyers return. Price action is now headed towards the 109.28 resistance line. Momentum indicators support bullish sentiment and are presenting with upward trajectories.
The EUR/USD pair has once again suffered from a sell-off, taking price action to break the ascending trendline. The next support level is at the 1.119 price level and currently, price action has yet to break this price level. A series of doji candles signifies a slowdown in bearish momentum. Momentum indicators have begun bearish trajectories.
The GBP/USD pair appears to be trading horizontally, oscillating between the 1.253 and 1.274 price levels. However, price action has broken the 1.253 price level in recent trading. Another support level exists at the 1.240 price area representing a long-term price low. If political uncertainty remains, the Pound could move lower.
The USD/CHF pair has made a mild recovery taking price action to break the 0.987 resistance line and the descending trendline. This is significant given the fact that the trendline has proven to be a strong resistance area for the pair on previous occasions. The break has been followed by a series of doji candles, however, which could signal waning appetite from buyers.
The USD/CAD pair has climbed to test the 1.313 resistance level as the US Dollar begins to recover. The next resistance line lies at the 1.320 price level and a break out from this price level would represent the return to a previous trading range/ full US Dollar recovery. Momentum indicators are undergoing bullish reversals.
Silver's rally continues to result in pullbacks to test the ascending trendline. A break of this trendline has resulted from the return of sellers, however, after the break, there has been a deceleration in bearish price action. Fundamental factors are likely to come into play in terms of the future direction of price action. RSI has a strongly bearish trajectory and MACD is approaching the zero line.
Gold price action has been volatile in recent trading with various geopolitical issues coming to the fore. The metal has broken the ascending trendline after several tests. It remains to be seen whether this represents the end of the rally and the beginning of more long-term bearish price action. Momentum indicators have turned bearish with MACD undergoing a momentum reversal and RSI moving away from overbought conditions.
WTI is testing the descending trendline which has held as a strong resistance area for the commodity. Overall, long-term price action has been bearish. Price action remains held below the $60 per barrel range, indicating that this price remains a stabiliser. Momentum indicators are slightly bearish; with a break of the zero line on MACD.
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