The Beginning Of A USOUSD Reversal?

• 22 Jan 2021

USD/JPY

The USD/JPY pair has stalled after the break of the 103.72 support level where price action may remain in the near-term. Given the widescale stimulus ahead, dollar weakness is expected. Currently, sellers lack the conviction to drive price action lower therefore the current trading range will remain intact. Momentum indicators have stalled in neutral/bearish territory.

 

 

 

 

GBP/USD

The GBP/USD pair has trailed higher resulting in a break of the 1.368 hurdle, indicating that bullish sentiment remains strong. Support for the pound is underlined by dollar weakness and these conditions are likely to continue.  Momentum indicators have flattened in bullish territory, highlighting further upside potential.  

 

 

 

 

EURUSD

The Eurodollar has begun to reverse the recent sell-off with price action breaking the 1.214 price line which appears to be a key psychological level for the pair. Price action is yet to form a trend and therefore more volatility may be ahead. Momentum indicators are divergent; RSI is bullish, MACD is bearish. 

 

 

 

 

XAUUSD

XAUUSD has failed at the descending trendline once again as another rally attempt has been thwarted. Sellers have taken the metal back towards the 1860 price line and therefore the moderate bearish trajectory will likely continue. Momentum indicators have stalled in bearish territory.  

 

 

 

 

USOUSD

USOUSD appears to be pulling back from the 52.63 support level, with selling activity rising in the early Asian trading session today. An ascending trendline is the next support area for the commodity. Longer-term sentiment remains bullish. Momentum indicators appear to be undergoing reversals. 

 

 

 

 

HK50

The HK50 looks to be undergoing a price reversal after a break of the 29626 resistance area. If the index breaks this price area to the downside, the sell-off may gather pace. Momentum indicators are bullish with RSI undergoing a sharp reversal.