NDX100 Breaks Key Consolidation Channel

• 10 Jan 2022

USD/JPY

The USDJPY pair has pulled back from the 116.15 ceiling, as sellers returned to the pair. A support level at the 115.41 price line is acting as an obstacle for buyers. Price action is also approaching the ascending trendline which represents a long-term support level facilitating bullish rebounds. 

 

 

 

 

GBP/USD

The GBPUSD pair is testing a key resistance area at the 1.361 resistance line and the descending trendline. Overall, longer-term sentiment remains bearish and therefore we may expect price action to revert. Momentum indicators suggest the pair is overbought and that a reversal may be imminent.   

 

 

 

 

EURUSD

The EURUSD is edging back towards the trendline with low conviction from both buyers and sellers. Sentiment appears moderately more bullish yet a downtrend has been well established since June. Momentum indicators suggest that sentiment may be turning more bullish with MACD testing the zero line.   

 

 

 

 

USDCAD

The USDCAD pair has dropped back to the 1.263 support line as a rally attempt has been stopped by a sharp rise in selling pressure. The question is whether sellers have the conviction to drive the break of a key support area. Momentum indicators have downward trajectories with MACD testing the zero line.  

 

 

 

 

XAUUSD

XAUUSD price action has rebounded from the ascending trendline once again as an uptrend becomes established. Price action is oscillating with higher lows yet the 1831 resistance level has remained an obstacle to rallies. Momentum indicators have begun to flatten in neutral/bearish territory.  

 

 

 

 

USOUSD

USOUSD rally has begun to fade and sellers have returned at the $78 per barrel mark. Given current conviction the pair will likely remain within the $70 per barrel range in the near-term. Momentum indicators are bullish with RSI approaching the 70 overbought line.  

 

 

 

 

NDX100

The NDX100 index has broken a key consolidation channel at the 15675 support line. The move is significant given several recent tests have failed to produce a break. The next test for sellers is the ascending trendline which has evolved as another key support level.