Precious Metals See New Highs But Will The Trend Continue?

• 24 Feb 2020

USD/JPY

The USD/JPY pair ended the previous trading session back below the 111.64 support level. Price action is still testing this price line as buyers remain active in the pair. Currently, the 112.27 resistance level remains a ceiling for the pair.  Momentum indicators remain in bullish territory although appear to be pulling back from strongly overbought conditions.  

 

 

 

 

EUR/USD

The Eurodollar is making a recovery as buyers return to the pair taking price action back towards the 1.08 resistance level. If the pair is able to test this resistance area, the bullish reversal is confirmed. Momentum reversals are also underway with pullbacks from strongly oversold conditions. 

 

 

 

GBP/USD

The GBP/USD pair continues to test the 1.295 resistance area as buyers returned to the pair after the break. As such, the pair is once again testing the descending trendline which on previous occasions has resulted in a pullback. The pair has entered into a descending triangle pattern which may suggest that a bearish breakout is on the cards. Momentum indicators have flattened in bearish territory.

 

 

 

USD/CHF

The USD/CHF pair has failed to move beyond the 0.983 resistance level and strong selling activity in previous trading sessions has taken the pair through the 0.980 support level. The break has resulted in a stall in price action which suggests that the recent move may represent only a pullback. Momentum indicators are pulling back from overbought conditions. 

 

 

 

USD/CAD

The USD/CAD pair has been volatile in recent trading with buyers and sellers tussling for control. Price action has tested and rebounded from the 1.321 support level. Bullish candles may take price action towards the 1.330 resistance level. Momentum indicators have stalled in neutral/slightly bullish territory.  

 

 

 

SILVER

Silver is testing a recent high at the 18.62 resistance line though a doji candle indicates indecision. The gap up may not be sustained as a lack of conviction from buyers may result in the metal pulling back. The new trading range may not be sustained with a lack of support from buyers. Momentum indicators are bullish with RSI approaching overbought conditions.  

 

 

 

GOLD

Gold buyers have taken price action to a new high at the 1660 price range. However, the shooting star pattern that has formed in the uptrend gives rise to a potential reversal. Rising selling pressure has taken price action back down towards the opening price. The closing price of the current candle will determine the strength of bearish sentiment. Momentum indicators are bullish, however RSI is testing the 70 overbought line. 

 

 

 

OIL

WTI has once again fallen short of the 54.10 resistance level and is now testing the 52.17 support level. Geopolitical issues have resulted in volatility for the commodity which has yet to find a stabilizing price. Momentum indicators are mixed with MACD following an upward trajectory and RSI pulling towards bearish/oversold conditions.