U.S. Dollar Bounces Back

• 25 Aug 2020

USD/JPY

The USD/JPY pair continues to test the 106.05 price level, yet in the last 4 trading sessions, a break has not materialised. Buyers remain active but not with enough conviction to drive price action. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has stalled midway between the 1.175 and 1.184 price levels which has been established as a new trading range. The move represents a likely pullback ahead of further bullish moves. Momentum indicators have downward trajectories.

 

 

 

 

 

GBP/USD

The GBP/USD pair is beginning to pullback towards a previous trading range with a break of the 1.311 support level.  The next support level is at the 1.288 price line. The next few trading sessions will determine the appetite of sellers. Momentum indicators have downward trajectories.

 

 

 

 

 

USD/CHF

The USD/CHF pair has stalled just above the 0.908 support level as price action begins to narrow into a descending triangle pattern. Long-term momentum is bearish therefore we may expect further downside for the pair.  Momentum indicators, by contrast, have upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has established a long-term downtrend and there are no current signs of conviction from buyers to initiate a trend change. A few tests of the 1.322 resistance level have not resulted in any sustained breaks. Movement in the pair reflects the current subdued nature of oil markets. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold buyers are struggling to sustain momentum and as such, the metal is returning back towards the ascending trendline. There appears little conviction currently for sellers and on several previous occasions Gold has rebounded from this support area. Momentum indicators have bearish trajectories. 

 

 

 

 

 

OIL

WTI is being held by the 41.67 support level which represents the filling of a previous gap in price action resulting from volatility as a result of the new pandemic outbreak. A moderate a slow recovery in prices has ensued yet the commodity remains stuck in the $40 per barrel range. Momentum indicators remain in bullish territory.