A Bullish Reversal On The Cards For WTI?

  • 3 Feb 2020


The USD/JPY pair has broken several support levels and is now testing the ascending trendline at the 108.46 support level. Given the previous trajectory of price action after reaching the trendline, a bullish rebound may be imminent. Momentum indicators have downward trajectories with RSI approaching oversold conditions.  






The Eurodollar is returning back towards the ascending trendline, having broken the 1.107 resistance level. Sellers appear to have returned in early trading where the ascending trendline may begin to act as a resistance area for the pair. Momentum indicators support bullish momentum with upward trajectories.  





The GBP/USD pair has broken the descending trendline with bullish moves gaining traction in recent trading. The moves also resulted in a break of the 1.316 resistance line. The next target for buyers is the 1.334 resistance level as some residual optimism remains for the pound. Momentum indicators are in bullish territory.





The USD/CHF pair continues to test the 0.964 support level and despite moderate breaks, price action has not moved towards the 0.960 support level. The longer-term trend remains bearish. Momentum indicators have moved further into bearish territory with RSI heading towards oversold conditions.  





USD/CAD buyers continue to display conviction taking price action back towards a recent high at the 1.330 resistance level. The last seven trading sessions have resulted in only one bearish trading day. Momentum indicators are bullish, however RSI is testing overbought conditions. 





Silver has failed to breach the 18.09 resistance level despite buyers returning to the pair. A bearish pullback takes place each time the resistance line is tested. Oscillations appear to be widening and a longer-term bearish trend appears to be forming. Momentum indicators remain in neutral/bullish conditions.  





Gold has pushed beyond a recent price high and is now moving towards the 1609.97 resistance level. Recent bullish momentum has been tempered by the return of sellers in the early trading session. A viral outbreak in China has contributed to investors’ fears as they seek a safe haven asset. Momentum indicators are bullish with RSI continuing to test the overbought conditions. 





WTI has dropped to the 51.14 support level where a hammer candlestick may signal a potential bullish reversal. Buying pressure is rising and a break of the 52.17 resistance level may provide further confirmation of a potential reversal. Momentum indicators are in strongly bearish territory, moving passed oversold conditions.


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