Gold Continues To Soar

• 6 Aug 2020

USD/JPY

The USD/JPY pair has begun to move towards the 104.67 support area, as there is little appetite from U.S. Dollar buyers currently. A new trading range may be established between the 104.67 and 106.05 price levels and oscillations are likely to remain in this trading range, for the near term. Momentum indicators remain in bearish territory. 

 

 

 

 

 

EUR/USD

The Eurodollar reversal appears to have been short-lived, as buyers have returned to break the 1.184 resistance line. Selling pressure remains and the question is: can the break be sustained? Momentum indicators suggest that bullish momentum may be waning as both have flattened; with RSI in overbought territory.

 

 

 

 

 

GBP/USD

The GBP/USD pair is stuck to the 1.311 resistance line, as a series doji/small-bodied candles indicate indecision. There is little appetite to drive price action higher, likely because Pound strength is not supported by fundamentals. Momentum indicators suggest the pair is overbought.

 

 

 

 

 

USD/CHF

The USD/CHF pair has failed to recover from the 0.908 support level, as sellers appear to still be active in the pair; driving a moderate break. Given current fundamentals, the current price level may not be sustained. Momentum indicators have stalled in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has resumed the downtrend, with the pair now testing the 1.322 price area. The U.S. Dollar sell-off appears to show no sign of abating. A long-term bearish trend is well established. Momentum indicators remain bearish with RSI testing the 30 oversold line. 

 

 

 

 

 

GOLD

Gold buyers still dominate price momentum, as the metal has surged towards the 2042.57 price line. There appears to be no sign of exhaustion from buyers, as long-bodied candles indicate strong bullish conviction. Higher highs are likely. Momentum indicators are looking strongly overbought.

 

 

 

 

 

OIL

WTI appears to have found some bullish momentum off the back of dollar weakness. A break will be necessary to facilitate a rally, yet currently appetite is weak. The 41.69 price level remains a key sticking point for the commodity. Momentum indicators remain in bullish territory.