Sell-Off In Asian Indices

• 7 Mar 2022

USD/JPY

USDJPY price action has dropped back towards the ascending trendline as sellers began to return to the pair at the tail end of last week. The trendline has remained intact as a support level since September 2021, therefore, strong bearish conviction will be required to drive the break.  

 

 

 

 

GBP/USD

The GBPUSD pair has plummeted towards a recent price low at the 1.320 support level. The sell-off has stalled at this level, where on one previous occasion a bullish rebound followed. Momentum indicators suggest that further downside may be limited as RSI tests the oversold line.  

 

 

 

 

EURUSD

The EURUSD sell-off has has taken the pair well-beyond a recent low at the 1.113 support level. Selling activity has risen after the break indicating strong bearish conviction, however, price action is yet to reached longer-term support levels from the last year. 

 

 

 

 

XAUUSD

XAUUSD has climbed once again with a gap indicating a strong bullish move and weight behind the rally. The metal has now reached the 1985 price level where some selling pressure has begun. Momentum indicators have moved beyond the overbought level which may suggest that a pullback is on the cards in the short-term.  

 

 

 

 

USOUSD

The USOUSD has climbed even further to the 121 per barrel level, reaching multi-year highs. Profitability at this level increases which may result in the return of production from non-traditional oil sources, thereby increasing supply as geopolitical conditions show no sign of abating. 

 

 

 

 

JP225

The JP225 has plummeted beyond the 25,480 support level, as sharp selling activity continues at the start of the trading week. Longer-term sentiment remains bearish which is being fueled in the short-term by fundamental factors. 

 

 

 

 

HK50

The HK50 is testing a long-term support level as a reflection of how much the index has sold off in recent trading. Selling activity has been driving price action since mid-February, as several gaps down show strong bearish conviction. The sell-off has stalled in today’s session, however, with a rise in buying pressure.