Eurodollar-Gold Sell-off To End The Trading Week

• 28 Jan 2022

USD/JPY

The USDJPY pair has moved to test the 115.41 resistance line whilst breaking the ascending trendline. Buyers appear to have found support and if a break materialises another test of the 116.15 ceiling could be on the cards. Momentum indicators have sharp upward trajectories. 

 

 

 

 

GBP/USD

GBPUSD pair has become dominated by selling activity and despite some stalls from buyers, the trajectory is clear. The next test will be the 1.320 support level which represent the lower bound of the current trading range and where the previous rally was formed. Momentum indicators have downward trajectories with RSI approaching the 30 line.

 

 

 

 

EURUSD

The EURUSD has seen a sharp rise in selling activity which has seen a previous support level breached. Price action has plummeted passed the 1.120 support level as the pair continues the already established long-term bearish trend.  Momentum indicators are bearish, with RSI testing the oversold line.

 

 

 

 

USDCHF

The USDCHF continues to blast towards the 0.936 ceiling as long-bodied candles reflect strong bullish support in the pair. Sellers appear to remain active and are providing some deceleration in price action as denoted by the upper shadows. Momentum indicators are bullish with some marginal upside potential.  

 

 

 

 

XAUUSD

XAUUSD has continued to sell-off with price action now testing the lower bound of the triangle- the ascending trendline. This trendline has effectively contained price action since September and therefore significant bearish conviction will be required to drive the break. 

 

 

 

 

 

WS30

WS30 is beginning to make a bullish recovery after a sell-off which began in December 2021. Long shadows represent a tussle between buyers and sellers, yet the trajectory of price action confirms a bullish bias. The next test is the 34,988 price line. Momentum indicators are undergoing bullish reversals. 

 

 

 

 

JP225

JP225 has begun to climb back towards the 27,272 resistance line as price action rejected the 26,026 support level. Buyers have returned in early trading and given the bearish bias in recent trading, strong conviction will be required to establish a rally.