A Reversal Or A Pullback For The Eurodollar?

• 17 Mar 2020

USD/JPY

USD/JPY buyers have struggled to move beyond the descending trendline and the 106.62. The recent rally represents a recovery from the recent sell-off. A trading range exists between the 107.93 and 110.19 price levels where a moderate uptrend existed before. Momentum indicators have upward trajectories.   

EUR/USD

Eurodollar buyers have stalled at the ascending trendline and the 1.116 resistance line, as selling pressure has begun to rise once again after a recent pullback in the rally. The current resistance area has proven to be a hurdle for buyers in the past. Momentum indicators have formed downward trajectories.  

GBP/USD

The GBP/USD pair has held at the 1.228 support level after four strongly bearish trading sessions. Selling pressure remains and further downside may be on the cards after the long-legged doji in yesterday’s trading. Momentum indicators have flattened in bearish territory are testing the 30 oversold line.

USD/CHF

The USD/CHF pair has rebounded to now test the 0.948 resistance level where buyers have struggled to move beyond the descending trendline. The pair may hug the descending trendline in near-term trading as the downtrend remains intact. Momentum indicators have formed upward trajectories with RSI breaking the 30 oversold line. 

USD/CAD

The USD/CAD rally appears to be losing steam as sellers return to the pair. Strong bullish price momentum in yesterday’s trading was met with selling activity in today’s trading. Momentum indicators remain in bullish territory though RSI indicates that there is a slowdown in bullish momentum and that the pair is oversold.   

SILVER

The Silver sell-off continues with price action spiking towards the 11.17 price level yet today, price action has pulled back towards the 12.76. Buying pressure has risen substantially, yet may not be enough to facilitate a trend change. Buyers’ conviction will be determined in the next few trading sessions. Momentum indicators have moved further into bearish territory with RSI moving beyond the 30 zone.

GOLD

Gold sellers have dominated price action in six of the last trading sessions and despite a spike towards the 1455.02 support level, price action pulled back between the 1485.27 and 1531.98 price levels. The metal may remain in the 1500 range going forward. Momentum indicators have turned sharply bearish with RSI testing oversold conditions.  

OIL

WTI continues to languish around the $30 per barrel mark as the sell-off starts to slowdown. Buyers have returned in alternate sessions, although have been unable to dominate price action. Momentum indicators remain strongly bearish and RSI has stalled at the 30 oversold line.