Eurodollar Buyers Continue To Dominate

• 10 Jun 2020

USD/JPY

The USD/JPY pair has plunged back towards the 107.93 support level as sellers return in emphatic fashion. The support level represents the floor of a previous trading range, therefore a break would indicate that a near-term trend is yet to be established. Momentum indicators reflect bearish sentiment with downward trajectories.

 

 

 

 

EUR/USD

The Eurodollar has pushed beyond the 1.124 resistance line, yet despite significant selling activity, buyers have returned to make another attempt at the 1.140 resistance line. Momentum indicators remain bullish and RSI is moving beyond the overbought ’70’ line.

 

 

 

 

GBP/USD

The GBP/USD pair has finally broken the 1.261 resistance level and is heading towards the 1.280 price level which represents the floor of a previous trading range. Momentum indicators remain in bullish territory and RSI is testing the overbought resistance line at 70. 

 

 

 

USD/CHF

The USD/CHF pair has broken the 0.959 support level and is now testing 0.948 price line. The break represents a new trend as the 0.959- 0.976 trading range has been breached. Momentum indicators remain in bearish territory with RSI approaching oversold conditions. 

 

 

 

USD/CAD

The USD/CAD sellers have taken price action towards the 1.333 price level as the pair returns to price levels seen before the Covid-19 breakout. Buyers have attempted a recovery yet selling pressure still remains. Momentum indicators remain bearish yet RSI is testing the 30 oversold line. 

 

 

 

SILVER

Silver has returned to the 17.58 price line yet price action has stalled with neither buyers or sellers having strong conviction. The pullback may be a short rest period before another drive higher. Momentum indicators appear to be undergoing reversals. 

 

 

 

 

GOLD

Gold buyers have returned to the metal to drive price action back towards the 1728 price area once again. The pair may oscillate between the 1693 and 1728 price levels for the near-term and in the absence of any good news. Momentum indicators have bearish trajectories with MACD approaching the zero line.

 

 

 

 

OIL

WTI has finally broken the 34.90 resistance level, which is significant as it represents a gap fill line from the previous downtrend. Price action is now closing the gap and is reaching the 41.40 price level and a break would give the rally real traction. Momentum indicators remain in bullish territory although RSI suggests oil is overbought.