A Break Imminent For USOUSD?

• 26 Feb 2021

USD/JPY

The USD/JPY pair has once again stalled at the 106.05 resistance line, as where selling pressure has risen. Sellers have returned early in the Asian trading session and significant conviction from buyers will be required to overcome this resistance area. Momentum indicators remain bullish with RSI testing the 70 overbought line.

 

 

 

 

GBP/USD

The GBPUSD rally appears to be reversing, as sellers have returned to the pair in early Asian trading. The next few trading session will determine whether the move is a pullback or a trend reversal. The next target is the 1.373 support level. Momentum indicators are also undergoing reversals with RSI dropping back below the 70 overbought line. 

 

 

 

 

 

EURUSD

The Eurodollar continues to test the 1.217 resistance line as sellers fail to dominate price action despite containing the break. A series of small-bodied candles indicate that buyers currently lack conviction and the current range may remain intact. Momentum indicators are bullish with MACD testing the zero line. 

 

 

 

 

 

USDCHF

The USDCHF pair has failed at the 0.907 resistance line as bullish momentum begins to fade. Given the lack of selling activity, another attempt at the resistance line may be made. Momentum indicators remain in bullish territory with RSI approaching the overbought line.

 

 

 

 

XAUUSD

XAUUSD has taken another bearish turn as rallies are continually thwarted. Price action has now returned towards the 1763 support level where previous bullish rebounds have taken place. A descending triangle pattern has formed indicating further downside potential. Momentum indicators have flattened in bearish territory.

 

 

 

 

USOUSD

The USOUSD has failed to break the 63.35 resistance line in the last 3 trading sessions. Given the number of tests and the current economic situation, a break seems inevitable. Momentum indicators highlight a potential reversal as bullish momentum slows. 

 

 

 

 

US500

The US500 has pulled back towards the ascending trendline where on previous occasions, the index has rebounded. Currently, buyers appear to have returned after a significant sell-off in yesterday’s trading. Momentum indicators have downward trajectories.