Eurodollar Comes Under Pressure At Close Of Trading Week

• 5 Feb 2021

USD/JPY

The USD/JPY rally shows no sign of slowing down. A break of the 105.40 resistance level in early trading sets a strong bullish intention for the day’s trading. A full break would take the pair back towards pre-pandemic price levels and a previous range. Momentum indicators are bullish with RSI testing overbought conditions.

 

 

 

 

GBP/USD

GBPUSD buyers are not willing to give up the fight as bullish pressure has taken the pair back to the key resistance area. There is still not enough conviction for a break and significant moves higher. A breakout may be inevitable though there are no signs that it will happen in the next week or so of trading, of course, unless the fundamentals picture changes. Momentum indicators have flattened in bullish territory.  

 

 

 

 

EURUSD

The Eurodollar has broken the ascending trendline as sellers appear inspired to drive price action back to the 1.192 support area. This price area represents a key resistance area from the past and therefore a break would be significant. Momentum indicators have downward trajectories, with RSI testing oversold conditions.

 

 

 

 

USDCHF

The USDCHF pair is testing the 0.903 resistance line as buying momentum has been sustained through several resistance areas. A return to a consolidation channel between the 0.903 and 0.918 price levels seems likely. Momentum indicators have sharp upward trajectories with RSI testing overbought conditions.

 

 

 

 

USDCAD

The USDCAD has begun a bullish breakaway from the descending trendline in the first sign of a longer-term trend change. The break has been moderated by low conviction from buyers yet the next target would be the 1.290 price line. Momentum indicators are bullish with MACD breaking above the zero line.

 

 

 

 

XAUUSD

The XAUUSD bearish breakout has arrived and sent price action back to a recent low at the 1778 support level. Buyers appear to have woken up in early trading but it is unlikely to overcome the long-term bearish bias in any significant way, especially from a short-term perspective. Momentum indicators remain in bearish territory. 

 

 

 

 

US500

The US500 has managed to break the 3857 ceiling after several failed attempts. US dollar bullishness has contributed to the move, however, the question remains: can it be sustained? Longer-term sentiment is bullish yet short-term conviction has been lacking. Momentum indicators have flattened in bullish territory.