Further Downside For USDCAD?

• 28 Apr 2021

USD/JPY

The USDJPY is starting to reverse the previous sell-off with price action moving to break back above the 108.55 price line. If Yen weakness continues, the pair may move back towards a price ceiling at the 111.23 price level. Momentum indicators are also undergoing bullish reversals. 

 

 

 

 

GBP/USD

The GBPUSD pair continues to float along the ascending trendline as price action remains moderately bullish. Oscillations are beginning narrow into an ascending tringle which signals a potential breakout- given the pattern the breakout should be bullish. Momentum indicators are bullish.  

 

 

 

 

 

EURUSD

The break of the descending trendline has resulted in a drop in bullish momentum signaled by two doji candles in the most recent trading sessions. A rest period may ensue as the pair consolidates within the current range. Momentum indicators suggest that the rally will not last and a reversal is on the cards.  

 

 

 

 

USDCHF

The USDCHF may once again consolidate within the 0.904-0.922 range. The sell-off has decelerated, yet, buyers do not currently appear to have the appetite to combat the bearish moves. Momentum indicators have tailed off in bearish territory. 

 

 

 

 

USDCAD

The USDCAD is the opposing mirror image of the USOUSD where the pair is testing two key support levels. Given the pressure build, a breakout may be anticipated. Sentiment has a bearish bias and with economic conditions improving we may expect this petrocurrency pair to head lower. Momentum indicators are bearish. 

 

 

 

 

XAUUSD

XAUUSD pattern of price action indicates that further downside can be expected. Despite a break of a key resistance level, buying momentum has been replaced by a float lower, giving way to a bearish bias. If the 1774.35 is broken once again, a period of consolidation will likely ensue. Momentum indicators have flattened in bullish territory. 

 

 

 

 

USOUSD

USOUSD price action is at the apex of a symmetrical triangle, where a breakout is imminent. Given the longer-term trend and the current fundamentals picture, a bullish breakout has the highest probability. Momentum indicators have flattened in bullish territory.