US Dollar Dominates At End Of Trading Week

• 5 Mar 2021

USD/JPY

The USD/JPY pair has broken several resistance levels, to now test the 107.90 price line, reaching a level not seen since the start of July 2020. The move signals more positive sentiment for the dollar and a strong price recovery. Momentum indicators suggest the pair is overbought, with RSI moving beyond the 70 overbought line.

 

 

 

 

GBP/USD

The GBPUSD pair is beginning to pull back towards the 1.373 support level as sellers are returning to drive price action. Conviction will be tested and has been weak so far in the bearish move, indicating the bearish sentiment may not drive a reversal. Momentum indicators have downward trajectories. 

 

 

 

 

 

EURUSD

The Eurodollar has broken the ascending trendline with a significant rise in selling pressure which has taken price action back towards the 1.192 support level. Momentum indicators have resumed downward trajectories with MACD breaking the zero line and RSI approaching the 30 oversold line. 

 

 

 

 

 

USDCHF

The USDCHF pair has surged towards a recent high at the 0.928 price level, which has not been reached since late September 2020. The U.S Dollar has finally found support, however, the question is whether the rally can continue.  Momentum indicators are bullish, with RSI moving beyond the 70 overbought line. 

 

 

 

 

XAUUSD

XAUUSD has continued its move lower as the metal comes under pressure from dollar strength. Moderate selling activity has taken price action below the 1708 support level. Momentum indicators are bearish with RSI now moving beyond the oversold line.

 

 

 

 

USOUSD

The USOUSD rally has continued with another test of the 63.35 price line, which has remained a hurdle for buyers even with such a significant price recovery. Demand for the commodity has remain strong in light of dollar strength indicating a strong base to the rally. Momentum indicators remain bullish.

 

 

 

 

HK50

HK50 has come under pressure as sellers have returned to the index in order to drive a trend change. Price action plummeted towards the 28,328 price area at the opening of today’s Asian trading session. The touch of the ascending trendline on previous occasions has resulted in bullish rebounds. Momentum indicators are bearish.