Precious Metal Sellers Dominate Price Action

• 13 Mar 2020

USD/JPY

USD/JPY buyers have made a moderate comeback in early trading today as the long-legged doji in yesterday’s trading suggests that uncertainty reigns. A moderate recovery of the sell-off is underway with the pair testing the 104.97 resistance line. Momentum indicators are undergoing moderate reversals with RSI clearing oversold conditions.   

 

 

 

 

EUR/USD

The Eurodollar experienced significant volatility in yesterday’s trading yet buyers managed to hold price action above the 1.116 support level. A break of this support line would mean the pair entering into a previous trading range. Momentum indicators are returning from strongly overbought conditions.  

 

 

 

GBP/USD

The GBP/USD pair was held up at the 1.251 support level after a strong sell-off in yesterday’s trading which saw the pair clear several support areas. The move comes as a confirmation of a longer-term downtrend. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

USD/CHF

The USD/CHF pair has rebounded from the 0.925 support level and a tussle has emerged between buyers and sellers. Buyers are currently dominating price action as the pair cleared the 0.942 price line and may now test the descending trendline. Momentum indicators have cleared the oversold line with upward trajectories. 

 

 

 

USD/CAD

The USD/CAD rally continues with the pair reaching multi-year highs as the covid-19 pandemic continues to incite fear. Volatility in oil prices have impacted the pair as the virus situation appear to be protracted. Momentum indicators have moved into strongly overbought territory.   

 

 

 

SILVER

Silver sellers have returned with gusto taking the metal through several support levels to wards the 15.35 price line. The sell-off comes amidst a longer-term moderate downtrend which has seen the commodity enter into a new trading range. Momentum indicators have moved further into bearish territory with RSI testing the 30 zone.

 

 

 

GOLD

Gold sellers are dominating price action currently as price action surges towards a key pivot level at the 1552.64 price area. The question is whether this move spells the end of an extended rally or a temporary pullback until fundamental factors subside. Momentum indicators support the bearish momentum with downward trajectories.  

 

 

 

OIL

WTI continues to languish around the 30 per barrel mark despite some signs of slowdown in virus infected cases in China. Yet with no OPEC deal on the horizon and a lack of demand from China, we may see a lack of support for the commodity. A momentum indicators remain strongly bearish and RSI has stalled in oversold territory.