Gold Buyers Hesitate Mid-Rally

• 2 Sep 2020

USD/JPY

The USD/JPY pair has begun to settle at a lower price range between the 104.67- 106.05 price levels, as again doji candles at the resistance area suggest little appetite to drive the break. With both currencies suffering weak spells, horizontal price action will likely continue unless new fundamental factors come into play. Momentum indicators have stalled in bearish/neutral territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has broken the 1.192 price high, signalling strong appetite from buyers. Yet, sellers remain active with heavy selling pressure in yesterday trading session containing the pair below the 1.192 price line. The longer-term rally remain intact and new highs are likely to be made after a ‘rest’ in the trend. Momentum indicators are bullish with further upside potential.

 

 

 

 

 

GBP/USD

The GBP/USD pair is approaching a longer-term price high at the 1.350 resistance area. However sellers have returned to contain the break. Dollar weakness is driving the majority of the upward momentum and the rally remain intact. Momentum indicators are bullish with RSI testing overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF pair has undergone a strong bullish breakout after once again testing the 0.903 support level. A spike through the price area in yesterday’s trading saw strong bullish momentum return. Can the break be sustained? Momentum indicators have moderate upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD sell-off is slowing as buyers are more active and have stalled the break of the 1.295 support line. There appears to be a lack of bullish momentum currently to drive a reversal. The next target is the 1.322 resistance area. Momentum indicators are bearish, with RSI testing oversold conditions. 

 

 

 

 

 

GOLD

Gold buyers appear to be struggling to assert their dominance. A series of small-bodied candles indicate a lack of bullish conviction. Price action may retrace back to the ascending trendline where we can expect another bullish rebound and so the pattern continues. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI represents an asset where neither buyers nor sellers have an interest in driving price action and the low volatility in an otherwise normally volatile product continues. Fundamental factors relating to supply and demand dominate the direction of this commodity and there has been no material change in these inputs in recent weeks.  Momentum indicators remain in bullish territory, with further upside potential.