Low Volatility At End Of Trading Week

• 29 May 2020

USD/JPY

The USD/JPY pair has failed to push beyond the 107.93 resistance level, where a series of doji candles have gathered, indicating a lack of conviction from buyers. The pair seems likely to take the previous horizontal price pattern in the near-term. Momentum indicators have moderate upward trajectories. 

 

 

 

 

EUR/USD

Eurodollar buyers’ persistence has finally taken the pair beyond the 1.098 resistance line and the next target is the 1.113 resistance level. The break is significant and ends a two-month deadlock at the 1.098 resistance area. Momentum indicators have turned bullish with a zero line break on MACD.

 

 

 

 

GBP/USD

The GBP/USD pair has rebounded from 1.208 price level after an extended bearish bias. Going forward, the pair will likely continue to oscillate between the 1.208 and 1.261 price levels. Momentum indicators are undergoing moderate reversals.

 

 

 

USD/CHF

The USD/CHF pair has failed several times at the 0.976 price level. Oscillations are beginning to narrow in a tighter trading range between the 0.965 and 0.976 price levels, therefore, a breakout could be imminent. Momentum indicators have begun downward trajectories. 

 

 

 

USD/CAD

The USD/CAD breakout has arrived and given the pattern of price action we may suspect the bearish move to continue. A target exists at the 1.354 support level and the next few trading sessions will determine the conviction of sellers. Momentum indicators have downward trajectories. 

 

 

 

SILVER

Silver has stalled just below the 17.58 resistance level which has represented an obstacle for the metal in the past. A trading range between the 16.55 and 17.58 price levels will likely remain intact in the near-term. Momentum indicators have stalled in bullish territory with RSI testing the overbought line.

 

 

 

 

GOLD

Gold buyers are still in the game and have been inspired to return after price action touched the 1693.16 support level. As such, price action is now heading back towards the 1728 resistance level once again. Momentum indicators remain in neutral/bullish territory.

 

 

 

 

OIL

WTI has spent the best part of a week testing the 34.90 resistance level. A break has still not materialised yet there is no real conviction from sellers. Momentum indicators remain in bullish territory although RSI is pulling away from overbought conditions.