A Potential Bullish Breakout For USD/CAD?

• 29 Sep 2020

USD/JPY

The USD/JPY pair has stalled mid-range between the 104.67 and 106.05 price levels. Given the lower highs and moderately lower lows, it is clear that sentiment remains bearish and therefore, the long-term downtrend remains intact. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar break of the 1.172 price level has resulted in the return of buyers. The question is whether buyers have the appetite to drive price action back to the previous trading range. A new range between the 1.149-1.172 price levels has been established. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GBP/USD

GBP/USD buyers have made several attempts to drive a bullish rebound, yet selling pressure remains. The next resistance area would be the ascending trendline, given its role as a support level in the past. The pair may now oscillate between the 1.274 and 1.311 price levels. Momentum indicators have begun upward trajectories.  

 

 

 

 

 

USD/CHF

The USD/CHF rally appears to be coming under pressure from sellers, which led the pair back towards the 0.925 price level in yesterday’s trading. If the reversal gains strength, we may see the pair return to the previous range between the 0.903 and 0.918 price levels. Momentum reversals are underway. 

 

 

 

 

 

USD/CAD

The USD/CAD pair continues to flatline just below the 1.343 resistance area. Neither buyers or sellers are dominating price action and given the recent flag pattern in the rally, we may expect current price action to be a period of consolidation before another bullish breakout. Momentum indicators are bullish, yet RSI is approaching the overbought zone.  

 

 

 

 

 

GOLD

Buyers have returned to Gold in the last few trading sessions, which should see the metal move to test the 1904.89 resistance area, once again. A break would see the pair return to the 1904.89- 2001.77 trading range. Momentum indicators are returning from oversold conditions. 

 

 

 

 

 

OIL

WTI is flatlining just below the 41.69 gap-fill line, with very modest bullish sentiment taking the commodity back towards the $40 per barrel range. There have been no major changes in supply and demand fundamentals, therefore, we may expect the current price pattern to continue. Momentum indicators have flattened in neutral territory.