A USOUSD Price Reversal Is Underway

• 21 Jan 2022

USD/JPY

The USDJPY pair has broken the trendline to the downside which is significant since the support area has held since September. The break reveals a shift back to bearish sentiment and a move back towards the 112.77 price line may be on the cards. Momentum indicators have downward trajectories.   

 

 

 

 

GBP/USD

GBPUSD has begun to flatline after a rejection of the descending trendline. Sellers appear to lack the appetite to drive near-term price action which is represented by a series of small-bodied candles just below the trendline. Momentum indicators have turned away from overbought conditions. 

 

 

 

 

EURUSD

The EURUSD continues to edge lower as bullish momentum fades and gives way to the longer-term, established bearish trend. The 1.120 support line will likely be the next test for the pair. Momentum indicators have downward trajectories, with MACD approaching the zero line.

 

 

 

 

XAUUSD

XAUUSD price action has pulled back towards the 1831 as a lack of support for the rally has seen the recent break fade. Doji candles represent indecision and neither buyer nor sellers appear to have the conviction to drive price action. Momentum indictors remain bullish although RSI has flattened.  

 

 

 

 

USOUSD

USOUSD price action has begun to reverse the recent high with strong selling pressure. Price action has moved back to break the 83.90 price line and if the break is sustained we could see the pair return to the $70 per barrel range. Momentum indictors are also undergoing bearish reversals with RSI pulling away from the overbought line.  

 

 

 

 

ASX200

ASX200 has gapped down at the open of the Asian trading session in a strong signal of bearish sentiment. The index is fast approaching a key support level at the 7,138 support line, where previously, bullish rebounds have taken place. RSI is fast approaching the oversold line. 

 

 

 

 

NDX100

NDX100 has plummeted further after breaking several support levels in quick succession, as a sharp rise in selling activity has dominated price action. The next test will be the 14,493 support level which represents a recent price low last challenged in September 2021.