Eurodollar Suffers A Sell-off At Start Of Trading Week
- July 2, 2019
Dollar weakness has subsided and hence the USD/JPY pair has moved beyond the 107.61 price level to spike through the 108.07 resistance line. The next target is the 108.78 resistance level. Momentum indicators support bullish sentiment and are presenting with upward trajectories.
The EUR/USD pair has once again suffered from a sell-off resulting in a break of the 1.130 support level. The recent trading range between the 1.130 and 1.141 price levels has also been broken which may suggest longer term bearish sentiment for the pair. Momentum indicators have begun a downward trajectory.
The GBP/USD pair appears to be trading horizontally with a series of doji candles and mild tests of the 1.271 resistance line. The pair is more likely to be impacted by fundamental factors going forward. Momentum indicators are moderately bearish.
The USD/CHF pair has made a recovery to break the 0.980 resistance line, with the next target at the 0.990 support level. Price action will reflect sentiment in the dollar, as the greenback begins to strengthen, price action will continue to move higher. Momentum indicators appear to be undergoing bullish reversals.
The USD/CAD pair has plummeted to the 1.309 support level after a strong dollar sell-off last week. On previous occasions this price level has proven to be a strong support resulting in a bullish reversal. In fact, buying pressure has risen and has taken price action to test the 1.312 price level once more. Momentum indicators remain in bearish conditions.
Silver's rally appears to have lost steam, with a push back in price action taking the metal to break the 15.23 support line. Fundamental factors are likely to come into play in terms of the future direction of price action. RSI has pulled away from the overbought 70 resistance line and MACD is undergoing a momentum reversal.
Gold price action has been volatile in recent trading. Various doji candles denote indecision and the fact that neither buyers nor sellers are dominating price action. The commodity is likely to remain in this trading range in the near-term until fundamental factors become clearer. Momentum indicators are turning bearish.
WTI has found resistance at the $60 per barrel price range. A series of doji candles at this price level are representative of the market anticipating further news. Without major changes to supply, WTI is likely to stabilise at the $60 per barrel range. Momentum indicators are bullish.
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