A Bearish Rebound Imminent For The Eurodollar?

• 22 Oct 2019

USD/JPY

 

The USD/JPY pair has failed to break the 108.83 resistance line which has resulted in a number of small-bodied candles oscillating in a very tight trading range. Price action is likely to remain in the 108 price range. Momentum indicators remain in bullish territory, although RSI is turning away from overbought conditions.

 

   

 

 

 

EUR/USD

 

The Eurodollar has broken but failed to clear the 1.112 resistance line, which represents a previous support area for the pair. Sellers appear to have returned to the pair after the break. Momentum indicators remain bullish with MACD breaking the zero line however RSI is pulling back from overbought conditions.   

 

 

 

 
 GBP/USD

 

The GBP/USD pair has climbed once again to the 1.295 resistance line. The Pound has recouped all the losses against the dollar for the last 5 months in the space of a few weeks. Whether price action can move beyond this resistance level is dependent on the conviction of buyers. Small-bodied candles suggest a lack of appetite. Momentum indicators are in bullish territory, yet RSI is pulling back to the overbought line. 

 

 

 

USD/CHF

 

The USD/CHF pair has pulled back once again to break the 0.985 support level and the ascending trendline. On previous occasions, this has been a strong support area from which price action has rebounded. Momentum indicators have downward trajectories although RSI is making a moderate recovery from oversold conditions. 

 

 

 

 

USD/CAD

 

The USD/CAD pair has returned to break the 1.314 support level which may result in price action heading towards the 1.307 support line. A break is significant as price action has oscillated between the 1.314 and 1.333 price levels in recent trading. Momentum indicators are bearish, and RSI has reached oversold conditions.

 

 

 

SILVER

 

Silver has moved through the apex of a symmetrical triangle which should result in a bullish breakout given the previous trend was bullish. Instead, the metal is languishing at the 17.42 support level with a series of doji candles indicating that there is indecision. Momentum indicators remain in bearish territory.

 

 

 

 

GOLD

 

Gold has been trading horizontally, within a tight trading range recently. Price action has broken the ascending trendline, which indicates sentiment has turned bearish. Price action continues to test the 1485.27 support level and sellers have been unable to breach this support level. Momentum indicators remain in neutral/bearish territory. 

 

 

 

 

OIL

 

WTI has broken the 53.27 support level with buyers pushing price action towards the $54 per barrel price range. Neither buyers nor sellers have been able to dominate which has resulted in essentially, horizontal price action. Momentum indicators remain in bearish territory.