Gold: Strong Bullish Potential

• 27 Aug 2020

USD/JPY

The USD/JPY pair continues to trade in range using the 106.05 price level as a guideline. Oscillations continue to narrow therefore a breakout may be imminent. A moderate long-term downtrend has been established indicating a bearish bias. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is again testing the 1.184 resistance area which price action has failed to break in recent trading. The narrowing of price action does suggest some kind of breakout could be imminent, therefore, the range between the 1.175-1.184 price levels may be breached. Current moves represent a cooling off period for the pair. Momentum indicators have downward trajectories.

 

 

 

 

 

GBP/USD

GBP/USD volatility continues and buyers have returned to test the 1.320 ceiling. Previous attempts have been thwarted by sellers, therefore, buyers’ conviction will be tested. Current moves may be a break higher after a period of consolidation in a longer-term uptrend. Momentum indicators have flattened in bullish territory.

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to consolidate around the 0.908 support level as there appears to be a moderate bearish bias with lower highs. A break of the support level has not been sustained. A longer-term downtrend exists and the pair is moving closer to the apex of a descending triangle. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD is beginning to reflect the weakness in the dollar, as the pair starts to move beyond the 1.320 price area to create new lows. Bearish sentiment will likely continue given the direction of long-term price action. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold has once again completed a bullish rebound from the ascending trendline which has been a longer-term support area for the pair. The move indicates strong bullish appetite as the pair oscillates towards the previous price ceiling at the 2065.11 resistance area. A strong bullish breakout could be on the cards. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

 

OIL

WTI remains elevated as the dollar remains weak. Whether the commodity can move further into the $40 range remains to be seen given historically low global demand, therefore any gains are likely to be very moderate.  Momentum indicators remain in bullish territory.