A Bullish Breakout Imminent For USOUSD?

• 12 Jul 2021

USD/JPY

The USDJPY pair is making a recovery after a sharp rise in bearish sentiment resulted in a break of the long-established ascending trendline. Buyers have since returned and the trendline may now act as a resistance zone for the pair. Momentum indicators have downward trajectories.

 

 

 

 

GBP/USD

The GBPUSD pair has rebounded emphatically from the 1.380 support level, as buyers return to drive price action towards the 1.399 price line, once again. Bullish conviction will be tested and the pair may now consolidate within the current trading range. Momentum indicators are beginning reversals.

 

 

 

 

EURUSD

The Eurodollar is testing the ascending trendline after breaking a resistance level at the 1.184 price line. A break would signal a price recovery and the return of bullish conviction. Momentum indicators appear to be undergoing bullish reversals.

 

 

 

 

USDCAD

The USDCAD has pulled back to the 1.245 support level, as selling activity climbed in the previous trading session. Price action stalled before the break and it remains to be seen whether the uptrend will continue. Momentum indicators are fast approaching overbought territory.

 

 

 

 

XAUUSD

XAUUSD is pressing forward at a moderate pace, with small-bodied candles indicating a lack of conviction from both buyers and sellers. The next target is the 1837 resistance line, with the ascending trendline remaining as a key support level. Momentum indicators have upward trajectories.

 

 

 

 

USOUSD

The USOUSD has recovered to test the 73.87 resistance level, once again. The rally looks set to continue and a break would see price action re-establish the $70 per barrel range. Momentum indicators suggest further upside potential with trajectories continuing in a bullish direction.

 

 

 

 

WS30

The WS30 index is testing the 34,864 resistance line which represents both a recent high and an obstacle for buyers. Previous break attempts have resulted in rising bearish sentiment. Bullish conviction looks strong into the move and today’s trading will likely establish near-term direction. Momentum indicators are bullish.