US Dollar Finds Support In Mid-Week Trading
- July 9, 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 break is significant as on previous occasions the pair has been unable to break this support line, resulting in a bullish rebound. The next support level is at the 1.119 price level. 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. The pair is more likely to be impacted by fundamental factors going forward. Momentum indicators have entered into strongly bearish territory.
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. Momentum indicators have turned more bullish.
The USD/CAD pair has climbed to test the 1.309 support level once again. A break would take price action towards the 1.313 resistance line (which represents a previous support). Momentum indicators are undergoing bullish momentum 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 pulled away from the overbought line and MACD has begun a bearish momentum reversal.
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 may find price stability around the $58 per barrel range, dropping just below the $60 per barrel range. A key resistance area lies at the 58.14 resistance level and a break would prove significant, likely taking price action towards the descending trendline. Momentum indicators are neutral which suggests that sentiment is neither strongly bullish or bearish.
Follow Us on Facebook: