Mid-Week US Dollar Revival

• 11 Aug 2020

USD/JPY

USD/JPY buyers are making another attempt to cross the 106.05 hurdle and entering a previous trading range. Overall, the trend is bearish over the longer-term, however, the USD has found support. Momentum indicators have begun upward trajectories with RSI pulling away from the oversold zone. 

 

 

 

 

 

EUR/USD

The Eurodollar appears to undergoing a reversal, as the initial optimism related to the Covid-19 bailout package begins to fade. The pair is now testing the 1.175 support level where a break may be imminent. Momentum indicators are also undergoing bearish reversals; with RSI breaking the 70 overbought line.

 

 

 

 

 

GBP/USD

The GBP/USD pair is struggling to sustain the bullish momentum as the current elevated levels are not supported by fundamentals. Sellers have driven the break of the 1.311 support level and the pair may remain in the 1.288-1.311 trading range in the near-term. Momentum indicators suggest the pair is overbought.

 

 

 

 

 

USD/CHF

The USD/CHF pair has found support in line with a USD revival. The next price target is the 0.925 resistance area, representing a recent low. Selling pressure remains, however, indicating there may be waning bullish momentum. Momentum indicators reflect a bullish bias with moderate upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair is oscillating within a bearish trend with bullish moves met with a rise in selling activity. Neither buyers or sellers are dominating the short-term moves, however, a longer-term downtrend has been established. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

Gold euphoria appears to be slowing as the USD begins to finds its feet. A break of the 2042. 57 price area may indicate a slowdown in a well established, long-term rally, rather than a trend change. Momentum indicators have sharp downward trajectories indicating a potential move out of overbought territory.

 

 

 

 

 

OIL

WTI horizontal price action seems set to continue as we are unlikely to see a move out of the $40 per barrel range, perhaps even until 2021. A lack of appetite for the commodity and persistent oversupply continues to contain price action. Momentum indicators remain in bullish territory.