The USD/JPY pair has rebounded from the 104.67 support level, as buyers have returned and the trading range remains intact. This price level remains an obstacle for sellers and for a long-term downtrend to be established, bearish momentum will have to be strong enough to overcome the support level. Momentum indicators have begun upward trajectories.
Eurodollar sellers have facilitated a breach of the 1.172 support level which could be significant if sustained. The longer-term rally may be reversed if bearish sentiment continues. The next target is the 1.149 price level. Momentum indicators have downward trajectories.
The GBP/USD pair is testing the 1.274 support level after breaking the ascending trendline. The next few trading sessions will determine the longer-term trajectory for the pair. If a break materialises the pound will likely continue to suffer. Momentum indicators have turned sharply bearish and RSI is approaching oversold conditions.
The USD/CHF pair has broken yet another resistance level at the 0.918 price line and the next target is the 0.925 resistance area. Clearly any further breaks provide weight to the rally. Dollar strength has been building for the last couple of trading sessions. Momentum indicators have upward trajectories.
The USD/CAD pair has stalled mid-range after breaking both the 1.322 resistance line and descending trendline. Doji candles indicate indecision in the pair and indicate that bullish sentiment may not last. Momentum indicators have sharp upward trajectories.
Gold has weakened considerably in recent weeks and as such, the metal has moved to test the 1904.89 price level where, previously, price action has rebounded. Horizontal price action may continue until significant changes in fundamental factors take place. Momentum indicators have turned bearish.
WTI will remain in the 35.15-41.69 trading range as the latest attempt to test the 41.69 ceiling resulted in a pullback. The commodity will likely oscillate between these two price levels going forward, with a struggle to sustain the $40 per barrel range. Momentum indicators have flattened in bearish territory.