The USDJPY pair continues to find support in mid-week trading, with strong buying activity driving price action in yesterday’s trading. In the last 12 trading sessions, a bullish bias has dominated the session and driven price action higher. Momentum indicators suggest the pair is strongly overbought.
The GBPUSD pair has broken the 1.320 resistance line with buyers returning with conviction to drive the rally. The 1.338 resistance line remains in sight and represents a previous support. Longer-term, sentiment remains bearish with the descending trendline representing a key obstacle to previous rallies.
The EURUSD has rejected the 1.113 resistance line and price action has narrowed to where a doji candle in yesterday’s trading reflects indecision. The pair will likely oscillate within range for the near-term until a material change in fundamentals.
USDCHF buyers have broken the ascending trendline and the continued support for the break, in terms of bearish momentum, could signal a longer-term trend change. Momentum indicators reflect the bearish sentiment, with MACD breaking the zero line to the downside and RSI approaching the 30 support level.
The XAUUSD continues to stall at the 1917 support line, as neither buyers nor sellers appear to have the appetite to dominate price action. This support level will likely contain price action in the near-term. Momentum indicators have moderate downward trajectories with RSI flattening in neutral territory.
The USOUSD has rejected the 112.92 resistance line, as sellers returned to contain price action and prevent the break. Price action will now languish within the 93.78-109.56 consolidation channel. Momentum indicators remain in bullish territory yet are moving away from overbought levels.
The HK50 has broken the 20,957 support level and the 22,808 price line remains in sight. Given recent volatility, conviction will need to be high to drive the break. Momentum indicators have upward trajectories with RSI breaking the default line in support of bullish sentiment.