A Bearish Reversal Imminent For ASX200?

• 31 May 2021

USD/JPY

The USDJPY has stalled before reaching the 110.69 resistance line as doji candles indicate a slowdown in bullish momentum. Oscillations continue and the pair seems likely to test the ascending trendline once again. Momentum indicators have flattened in bullish territory.

 

 

 

 

GBP/USD

The GBPUSD pair has made several attempts to move beyond the 1.418 resistance level and yet bullish conviction remains insufficient to drive the break. Doji candles highlight indecision in the pair as neither buyers nor sellers have the appetite to drive price action. Momentum indicators have flattened in bullish territory.

 

 

 

 

EURUSD

Eurodollar price action has narrowed and despite strong buying pressure in last week’s trading, the rally has not yet resumed. Price action will likely languish around the 1.217 support level. Momentum indicators have stalled in bullish territory. 

 

 

 

 

USDCHF

USDCHF has rebounded towards the 0.904 resistance line as the pair attempts to make a recovery from pandemic price levels. US dollar weakness has determined the trajectory of price action. Momentum indicators have upward trajectories.

 

 

 

 

XAUUSD

XAUUSD has found some moderate support and therefore, price action is headed back towards the 1950 resistance line. The ascending trendline remains intact as a key support level further confirming long-term bullish sentiment.  Momentum indicators suggest that the pair is overbought and a reversal may be on the cards.

 

 

 

 

USOUSD

USOUSD continues to test the 66.72 resistance area, although doji candles suggest that both buyers and sellers lack the conviction to drive price action. A bullish breakout seems imminent given that price action has formed around an ascending triangle pattern. Momentum indicators have flattened in bullish territory.

 

 

 

 

ASX200

ASX200 has broken the 7120 resistance level after several attempts for the last couple of months. The break has been somewhat subdued, as bullish momentum remains weak. Momentum indicators have begun accelerating into bullish territory.