Euro-Area Currencies Continue To Suffer

  • 20 Mar 2020


USD/JPY buyers have again built enough momentum to break the 110.19 resistance line and yet have been held up before testing the 111.64 price line. The break may be the first move in a longer-term uptrend. Momentum indicators have upward trajectories.   






The Eurodollar has once again come under pressure with sellers pushing price action towards the 1.089 price level where buying pressure commenced. A doji in today's trading represents indecision and could signal a trend change, however, given the dynamics in fundamentals lately, further confirmation is required. Momentum indicators have formed downward trajectories.  





The GBP/USD pair has plummeted towards the 1.149 price level and despite buying pressure sentiment remains bearish. Further developments in the coronavirus has impacted the pair as the UK prepares for the peak. Momentum indicators support the bearish bias with RSI extending into oversold territory.





The USD/CHF pair has found a hurdle at the 0.983 resistance area. Sellers have returned to test the price level, where a previous trading range has been established between the 0.964 and 0.983 price levels. Momentum indicators have upward trajectories, yet RSI is approaching overbought territory. 





The USD/CAD rally seems to have reached a peak as heavy selling pressure has ensued in the last few trading sessions. An evening star doji pattern appears to be forming which suggests a reversal is underway. Momentum indicators remain in bullish territory however RSI has turned back towards the 70 resistance line.   





The Silver sell-off appears to be losing steam as buyers return to the metal albeit at a moderate pace. The next target is the 14.30 support level. Momentum indicators support bullish momentum with RSI turning back towards the 30 support line after extending into oversold conditions. 





Gold buyers have returned to test the 1485 resistance area as a price floor appears at the 1455 support area. The question remains: do buyers have enough conviction to push a break of this resistance area and return to the previous trading range? Fundamental factors will likely be an influence. Momentum indicators remain bearish although RSI is testing oversold conditions.  





WTI price action has made a moderate recovery, with buyers returning to move price action back towards the $30 per barrel range. The recovery is in line with some signs of recovery in China as fewer COVID-19 cases appear. Fundamental factors, including disputes between OPEC and Non-OPEC producers, remain the main driver of price action. Momentum indicators have decelerated in bearish territory and RSI is testing the 30 support level.


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