Eurodollar Breaks Key Resistance Line

• 4 Feb 2022

USD/JPY

The USDJPY pair has rebounded from the ascending trendline and 114.33 support line as buyers once again return to confirm the bullish bias. A resistance line at the 115.41 price level will be the next test for the pair which has been ranging lately. Momentum indicators are moderately bullish.

 

 

 

 

GBP/USD

GBPUSD pair has moved to test the ascending trendline which has been a strong resistance area in the past. Typically, when price action hits this resistance zone bearish rebounds follow. Given the number of small-bodied candles in recent sessions, it appears conviction will be insufficient to drive the break. 

 

 

 

 

EURUSD

The EURUSD has broken the descending trendline with a strong bullish candle in yesterday’s trading. This trendline had held since August last year, therefore the break is significant indicating a shift to bullish sentiment. The 1.153 resistance line will remain a target for the pair. 

 

 

 

 

USDCAD

The USDCAD has bounced back from the 1.263 support line as price action begins to oscillate once again in a consolidation channel between the 1.263 and 1.282 price levels. Oscillations are beginning to widen in an uptrend that began last October.   

 

 

 

 

XAUUSD

XAUUSD continues to hug the ascending trendline, as a lack of conviction from sellers has seen the bearish move stall and buyers have returned. Price action will now follow this bullish trajectory given that attempted breaks have resulted in rising buying pressure. 

 

 

 

 

 

US500

US500 has rejected the 4554 price line, as a doji candle indicates the top of a reversal move. Despite some influence from buyers, price action has turned bearish and the current trading range will remain intact with the lower bound at the 4306 support line. 

 

 

 

 

ASX200

ASX200 has begun to climb back towards the 7,121 resistance line, yet in the last few trading sessions, selling activity has begun to rise, indicating that there may be a lack of bullish momentum to drive the break. Momentum indicators are beginning reversals.