Asian Indices Find Support Mid-Week

• 1 Sep 2021

USD/JPY

The USDJPY pair has found support which has taken price action beyond the descending trendline. Bullish momentum looks moderate currently, yet the next target is the 110.66 resistance line. The 109.02-110.66 trading range has been maintained since early July. Momentum indicators are moderately bullish.  

 

 

 

 

GBP/USD

The GBPUSD pair has rejected the trendline once again, as sellers have returned to move price action lower. Lower highs confirm the trend is descending and oscillations will continue to move in a tighter range. Momentum indicators have flattened in bearish territory.

 

 

 

 

EURUSD

The Eurodollar has stalled after the break of the 1.177 resistance line indicating weak conviction in the rally. Selling pressure rise in yesterday’s trading and the break may not be sustained. Price action may now float along the 1.177 support level. Momentum indicators are bullish. 

 

 

 

 

XAUUSD

The XAUUSD rally may have a second wind after a stall. Buyers returned in yesterday’s trading yet price action remain in a tight range. The 1860 resistance zone remains a target as the upper bound of a consolidation channel. Momentum indicators are bullish.

 

 

 

 

USOUSD

The USOUSD has pulled back before even testing the descending trendline as bearish sentiment once again dominates price action. A support level for the recent move exists at the 66.27 price level. Momentum indicators have flattened in neutral territory.

 

 

 

 

HK50

The HK50 has broken the trendline which has been established as a resistance area since late June. Clearly, the break is significant as it represents a change in sentiment for the index. A target now exists at the 25,942 resistance line. Momentum indicators have flattened in bearish territory.

 

 

 

 

JP225

The JP225 is climbing back towards the 28,532 resistance line whilst currently testing the trendline. Strong bullish conviction into the move may facilitate a break and the return to a previous consolidation range. Momentum indicators have turned bullish.