US Dollar Struggles To Recover

  • 8 Jan 2020


The USD/JPY pair has broken back above the 108.06 support level and is now testing the 108.46 resistance line. This has represented a key support level in recent trading- acting as a price floor. The next target is 108.83 as the pair attempts to maintain the 108.06-109.61 trading range. Momentum indicators have bearish trajectories; approaching oversold conditions. 



The Eurodollar continues to be volatile around the 1.116 support level. The 1.120 resistance level appears to be a sticking point for the pair with price action unable to move beyond this price level for the last 6 months or so. Although the overall trend is bullish the next likely move is towards the 1.112 support level. Momentum indicators have bearish trajectories. 


The GBP/USD pair is languishing around the 1.309 support level and despite tests of the 1.316 resistance line, a break has not materialized. Price action may head back towards the ascending trendline where a bullish rebound has taken place on previous occasions. Volatility is expected as Brexit plans are finalized. Momentum indicators have flattened in bullish territory. 


The USD/CHF sell-off has decelerated and price action has stalled at the 0.968 price level. A few bearish breaks have proved to be short-lived with price action returning back above the support level. When price action has reached this level on previous occasions, a longer-term uptrend has followed. Momentum indicators have flattened in bearish territory.  


The USD/CAD pair has made a recovery from the sell-off, with bullish moves taking price action away from the 1.295 support level. The next target is the 1.302 resistance level although appetite from buyers appears to be waning already. Momentum indicators have flattened in oversold conditions. 


Silver bulls have been tempered with a rise in selling pressure and despite price action spiking through the 18.62 resistance level, a full break has not occurred. There is still buying activity in the metal however, the 18.62 price level remains an obstacle for bulls. Momentum indicators have reached overbought conditions.   


Gold buyers won the tussle in yesterday’s trading which has inspired further bullish moves in the early Asian trading session. As long as geopolitical tensions remain, investors will favour precious metals. Gold remains at a multi-year high. Momentum indicators remain bullish with RSI moving deeper into overbought territory. 


WTI price action has spiked through to the $65 per barrel range. The move has resulted in a push back below the 64.62 resistance level. Price action will likely remain elevated as Middle East altercations unfold. A stabilizing price for the commodity exists around the $60 per barrel mark. Momentum indicators have flattened in bullish territory with RSI reaching overbought conditions.

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