Signs Of Life In The Eurodollar?

• 21 Feb 2020

USD/JPY

The USD/JPY pair surged in recent trading as yen weakness persists, with the pair approaching the 112.27 resistance level. No break has currently materialized in early Asian trading. Momentum indicators remain in bullish territory although appear to be pulling back from strongly overbought conditions.  

 

 

 

 

EUR/USD

The Eurodollar sell-off appears to be stalling with a series of bullish candles slowing the move. This may be the first indication of a trend change yet sellers still appear to be active. Momentum indicators have also flattened in oversold territory yet there is no signal of a reversal. 

 

 

 

GBP/USD

The GBP/USD pair has moved lower extending the push beyond the 1.295 support area with the next target at the 1.280 support area. A longer-term downtrend remains intact with the descending trendline acting as a resistance line. Momentum indicators have moved into bearish territory with RSI approaching oversold conditions.

 

 

 

USD/CHF

The USD/CHF pair has failed to move beyond the 0.983 resistance level which represents a previous support level. The most likely course for the pair is back towards the 0.980 support level as buyers appear to lack conviction currently. Momentum indicators have flattened just below the 70 resistance level. 

 

 

 

USD/CAD

The USD/CAD pair has rebounded from the 1.321 support level, with strong bullish candles taking price action back towards the 1.330 resistance line. It appears the recent bearish moves were a pullback in a longer-term uptrend. Momentum indicators have downward trajectories and are pulling away from overbought conditions.   

 

 

 

SILVER

Silver is testing a recent high at the 18.37 resistance level and may move beyond this price area towards the 18.62 resistance line. The metal appears to have broken out of a recent trading range, the question is: how much conviction buyers have to drive price action higher? Momentum indicators are bullish with RSI falling just short of overbought territory.  

 

 

 

GOLD

Gold buyers have taken price action beyond the 1609.97 ceiling. The move may indicate a new norm for the metal, determined by its ability to remain above the 1600 threshold. Given the positioning of momentum indicators, the current level may not be sustained. Momentum indicators are bullish, however RSI is testing the 70 overbought line. 

 

 

 

OIL

WTI has moved towards the $55 per barrel range with a spike in price action. The break was not sustained, however, with price action falling back below the 54.10 resistance line once again. A long-term uptrend is forming after the recent sell-off. Momentum indicators have upward trajectories with RSI moving into the ‘buy’ channel.