HK50 Surges Towards Key Resistance Zone

• 4 Aug 2021

USD/JPY

The USDJPY pair has begun to break the 109.13 support level which is the lower bound of a recent trading range. Bearish sentiment is driving price action which looks set to continue to break out of the current range. Momentum indicators are bearish with further downside potential.  

 

 

 

 

GBP/USD

The GBPUSD pair will make another attempt at the 1.395 price level after a recent pullback. The price level represents the upper bound of a recent trading range and a break would indicate significant bullish conviction.  Momentum indicators are bullish.

 

 

 

 

EURUSD

The Eurodollar continues to float along the 1.184 price line, as neither buyers nor sellers appear to have the appetite to drive price action. The current range between the 1.184 and 1.198 price levels will likely remain intact. Momentum indicators have upward trajectories.

 

 

 

 

USD/CAD

The USD/CAD is tracing the ascending trendline higher as buyers appear to have the edge currently, despite a rise in selling pressure. A target exists at the 1.263 resistance level which has been an obstacle to rallies in the past. Momentum indicators have flattened in bullish territory.

 

 

 

 

XAUUSD

The XAUUSD is oscillating back towards the lower bound of an asymmetric triangle, which on previous occasions, has resulted in a bullish rebound. A rally does appear to be forming with higher lows, indicating that a breakout is most likely to be bullish. Momentum indicators have flattened in neutral/bullish territory.

 

 

 

 

USOUSD

USOUSD has pulled back to test the ascending trendline and currently, buying pressure is rising, as denoted by the long lower shadow. The trendline is well established as a key support area where buyers normally return. Momentum indicators are beginning to turn bullish once again.

 

 

 

 

HK50

The HK50 is surging back towards the 27,117.48 resistance level, as bullish momentum returned at the 25,942 support line. A test of this resistance level would mean the return to a previous trading range which had been a zone of consolidation since February. Momentum indicators remain in bearish territory.