Has The Oil Rally Ended?

• 15 Jan 2019

USD/JPY

 

 

The USD/JPY pair has made a recovery from a sharp sell-off last week. However, the pair has been unable to break the 108.73 support level.  A seeries of doji candles show that neither buyers nor sellers are dominating the pair. Momentum indicators have stalled in bearish conditions with RSI testing the 30 support level. 

 

 

 

 

EUR/USD

 

 

The EUR/USD pair has begun a strong rally breaking several resistance levels including the 1.153 price level. Sellers returned as soon as the pair reached the 1.153 resistance area. Momentum indicators have stalled in bullish territory with MACD flattening and RSI approaching the default line. 

 

 
 
 
 GBP/USD

 

 

The GBP/USD pair has also made a recovery from the sell-off last week and has broken the 1.269 price level. Strong bullish moves have resulted in the pair moving to test the 1.292 price level. MACD has broken the zero line and RSI has maintained an upward trajectory.

 

 

 

 

USD/CHF

 

The USD/CHF pair has rallied once again to begin a bullish break of the 0.978 support level, however, the pair is yet to break the next resistance line at 0.986 price level, clearly a break would prove significant. Momentum indicators are neutral to bearish with MACD extending below the zero line and RSI stalling above the 30 support level.

 

 

 

 

USD/CAD

 

 

The USD/CAD pair has pulled back from a long-term uptrend and as a result has broken several support levels to reach the 1.316 support level. The pair has responded with a moderate break of the 1.326 price level. Momentum indicators are mixed; with MACD breaking the zero line to the downside and RSI making a bullish recovery.

 

 

 

SILVER

 

A series of doji candles represent indecision as Silver struggles to break through the 15.69 price level. A reversal may be imminent as the pair is unable to break the resistance line. Momentum indicators also suggest a reversal is likely with MACD beginning a momentum reversal and RSI pulling back to test the 70 resistance level. 

 

 

 

 

GOLD

 

 

Gold has also stalled after a significant rally, still falling short of a recent price high of 1303.94. The metal appears to be taking a pause in the rally as denoted by a series of doji candles. RSI continues to test the 70 resistance area and MACD has begun a bearish momentum reversal. 

 

 

 

 

OIL

 

 

WTI buyers were dominating price action with rising buying activity as the commodity climbed beyond $50 per barrel. Sellers have returned and bearish momentum has returned albeit at a moderate pace. Momentum indicators are also moderately bullish; with MACD approaching the zero line, however, RSI has flattened around the neutral zone.