The USDJPY pair has moved back towards the descending trendline, as bullish price action has begun to dominate the pair. Up until now, the trendline has contained any rally attempts which has kept the descending triangle pattern intact. As a bearish continuation pattern, we may expect to see a breakout to the downside.
The GBPUSD pair has moved to test the 1.361 support level, as selling activity has resumed after a stall. On previous occasions, a test has resulted in a bullish rebound and therefore strong bearish conviction will be required to facilitate the break. Momentum indicators have flattened in bearish territory.
The Eurodollar has stalled at the 1.165 support level where buyers have returned in early trading. The sell-off has been stalling as the pair moved closer to the support line. Typically, bullish rebounds take place at this price line and another bullish pullback seems likely.
The USDCAD has pulled back from the 1.282 price ceiling despite a spike through and attempted break. Rising buying activity in yesterday’s trading also failed to result in a break and as such, price action has pulled back to the 1.274 support level. Momentum indicators are bullish.
XAUUSD has rebounded from the 1753 support line, yet the bullish move was short-lived. Price action may now bounce along the support level as buyers appear to lack the conviction to drive a rally and currently, bearish conviction is too weak to push a break.
The ASX200 is climbing towards the 7399 resistance line, Bullish momentum appears to be rising significantly which may form a break and recovery back to the 7617 price high. A longer-term bearish trajectory has been forming yet if conviction continues, sentiment may turn. Momentum indicators are undergoing reversals.
The HK50 index has retraced from the 23,850 support line, as bullish sentiment begin to return to the index. The 25,029 resistance line is in sight, yet selling pressure remains. Given the tussle, price action may languish within the current trading range.