A HK50 Breakout On The Cards?

• 25 Jun 2021

USD/JPY

USDJPY has broken the upper bound of the ascending triangle yet the break has resulted in indecision for the pair-as denoted by doji candles. It appears that bullish sentiment is insufficient to sustain the current move and a retracement is likely. Momentum indicators have flattened in bullish territory.

 

 

 

 

GBP/USD

The GBPUSD pair is likely to consolidate between the 1.380 and 1.399 price levels, as an attempt at the upper bound of the range was rejected. Bearish sentiment also appears moderate. Momentum indicators have flattened in bearish territory.

 

 

 

 

EURUSD

The Eurodollar has begun to stall on the rebound indicating that bullish sentiment continues to wane. The breakdown in the previous rally has left buyers reeling and there appears little appetite to drive another rally currently. Momentum indicators have flattened in bearish territory.

 

 

 

 

USDCHF

The USDCHF pair has rejected the 0.922 resistance level yet bearish sentiment remains weak as small-bodied candles have price action fading away from the resistance zone. A period of consolidation may now follow with upper and lower bounds at the 0.922 and 0.904 price levels. Momentum indicators have flattened in bullish territory.

 

 

 

 

XAUUSD

XAUUSD is languishing at the 1778 price level and a break of the ascending trendline may be on the cards. Low liquidity has resulted in horizontal price action and may result in the metal fading downwards. Momentum indicators suggest the metal is oversold.

 

 

 

 

WS30

The WS30 is climbing back towards a recent price high at the 34,864 resistance zone. This price level has been tested on several occasions without a break and therefore significant bullish conviction will be required to sustain a rally.  Momentum indicators have upward trajectories. 

 

 

 

 

HK50

The HK50 will make another attempt at the 29,518 resistance level after consolidating in range since the beginning of February. Clearly, strong bullish conviction will be required to drive the break. Momentum indicators confirm the switch to bullish sentiment.