Dollaryen Breaks Key Support Level

• 21 Sep 2020

USD/JPY

The USD/JPY pair has broken the floor of the trading range at the 104.67 support level. The break is significant as it highlights a move towards Covid-19 outbreak levels. Momentum indicators are bearish with RSI testing oversold conditions.  

 

 

 

 

 

EUR/USD

The Eurodollar continues to consolidate mid-range as neither buyers or sellers have the desire to drive price action.  A bullish breakout may be expected after the ‘rest’ period. Momentum indicators have flattened in bullish/neutral territory. 

 

 

 

 

 

GBP/USD

The GBP/USD pair is consolidating around the ascending trendline as neither buyers nor sellers are dominating. The return to the trendline indicates that bullish sentiment remains. Momentum indicators have begun upward trajectories. 

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to test the upper trendline of a descending triangle. Each time the pair tests, a bearish pullback occurs. A bearish breakout therefore seems the most likely course of action for the pair in the near-term. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has failed to break both the 1.322 resistance line and descending trendline, once again. Given the longer-term bearish trend we may expect the pair to continue to track the trendline going forward. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold is consolidating as a period of uncertainty impacts the metal. Small-bodied candles indicate low volatility which may be leading up to a breakout. Given the lack of weight behind the break, we may expect bullish moves to resume.  Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI buyers have taken price action back towards the 41.69 price level and this is where bullish momentum has stalled. It is a key resistance area representing a gap fill line from a previous price gap. The metal has also failed to move beyond this level with conviction in the past. Momentum indicators have upward trajectories.