US Dollar Strengthens Towards End Of Trading Week

• 4 Feb 2021

USD/JPY

The USD/JPY pair is slowly making its way towards the 105.40 resistance level, though small-bodied candles indicate that bullish momentum is slowing. A reversal is yet to materialise but seems only a matter of time, given the lack of conviction from buyers. Momentum indicators are bullish with RSI testing overbought conditions.

 

 

 

 

GBP/USD

The GBPUSD pair is slowing moving away from the resistance level it has been unable to move beyond for the last couple of months. The pair seems likely to move back towards support levels at the descending trendline and depending on sellers’ conviction, the 1.338 price levels. Momentum indicators have begun downward trajectories.  

 

 

 

 

EURUSD

The Eurodollar has broken the ascending trendline in the first sign of strengthening bearish momentum. The next target in sight for sellers is the 1.192 support level which represented a strong resistance level in the past. The break of the trendline has, however, seen a reduction in bearish sentiment. Momentum indicators have downward trajectories.

 

 

 

 

USDCAD

The USDCAD continues to tests the ascending trendline as neither buyers nor sellers have gained control over near-term price action. A pullback seems the most likely outcome especially as the pair moves closer to the apex of the descending triangle. Momentum indicators have flattened in neutral territory.

 

 

 

 

XAUUSD

A XAUUSD bearish breakout looks to be underway. Sellers have driven price action beyond the 1829 price level in the early Asian trading session. The next target is the 1778 support level which represents a recent price low.  Momentum indicators have flattened in bearish territory. 

 

 

 

 

USOUSD

The USOUSD has found continued support with buyers driving the commodity beyond a recent high at the 56.05 price level. If oil output restrictions continue, further highs are imminent with the $60 per barrel range acting as a profitability target. Momentum indicators remain bullish and continue to test overbought conditions. 

 

 

 

 

NDX100

The NDX100 is looking at a potential bullish breakout. Another rejection of the 13,573 resistance line appears to have encouraged the return of buyers in early trading. The ascending trendline remain a key support level for the index. Given the sharp trajectory and sheer length of the recent rally, a break seems imminent. Momentum indicators are bullish and highlight further upside potential.