Some Life Left In The Pound?

• 18 Mar 2020

USD/JPY

USD/JPY buyers have been held at the 107.93 resistance line as there appears to be a lack of conviction to push the break beyond this resistance area, where a long-term trading range exists. Sellers have since returned in today’s trading, taking price action towards the 106.62 support level. Momentum indicators have upward trajectories.   

 

 

 

 

EUR/USD

The Eurodollar has once again come under pressure with sellers pushing price action towards the 1.096 support level. However, the pair was held just above this support level and has now moved to test the 1.102 resistance line. Momentum indicators have formed downward trajectories.  

 

 

 

GBP/USD

The GBP/USD pair has rebounded from the 1.201 support level and may now test the 1.216 resistance line as buyers have returned to begin the reversal. The sell-off represents a sharp move in a more moderate downtrend. Momentum indicators have flattened in bearish territory and are testing oversold conditions.

 

 

 

USD/CHF

The USD/CHF pair has rebounded with the rally beginning to find support. As such, the pair is now testing the 0.961 resistance line after a touch of the 0.964 resistance area. If price action can move beyond this resistance area, a full recovery would be confirmed, as the break would represent the return to a previous trading range. Momentum indicators have upward trajectories. 

 

 

 

USD/CAD

The USD/CAD rally continues despite some rise in selling pressure. The pair has topped multi-year highs and yet US Dollar buyers remain active. There are not currently any strong signs of a reversal therefore there could be further upside in the pair. Momentum indicators remain in bullish territory with RSI extending further into overbought territory.   

 

 

 

SILVER

The Silver sell-off appears to be losing steam as buying pressure rises, denoted by the long lower shadows. Buyers appear to be returning to the pair in early trading today. If the current candle closes bullish and moves towards the  14.30 resistance area, a reversal seems likely. Momentum indicators are recovering from strongly oversold conditions.

 

 

 

GOLD

Gold buyers have returned in emphatic fashion with buying pressure rising, denoted by the long lower shadows in the last two trading sessions. As such, the metal is now testing the 1531.98 resistance area and moving towards a previous trading range that was maintained before a series of recent geopolitical events. Momentum indicators appear to be rebounding from oversold conditions.  

 

 

 

OIL

WTI price action has moved lower, breaking the $30 per barrel range as a global recession appears more likely. How much further WTI prices fall will be determined by the development of the coronavirus. Given the trajectory of momentum indicators, oil prices are likely to remain in bearish territory.