US500 Set To Surge Higher?

• 25 Feb 2021

USD/JPY

The USD/JPY pair is once again testing a strong resistance area at the 106.05 price level, buyers have returned with conviction, cementing bullish momentum and confirming the rally. A break should provide significant weight to the rally. Momentum indicators remain bullish with RSI testing the 70 overbought line.

 

 

 

 

GBP/USD

The GBPUSD rally appears to be slowing, as selling pressure is beginning to rise. A series of small-bodied candles in the last 4 trading sessions suggest that bullish momentum may be waning. Momentum indicators remain in bullish territory RSI moving beyond the overbought line.  

 

 

 

 

 

EURUSD

The Eurodollar has moved to test the 1.217 resistance line, however, despite buying pressure, a break is yet to materialise and small-bodied candles indicate that is due to a lack of conviction from buyers. Momentum indicators have flattened in neutral/bullish territory.

 

 

 

 

 

USDCHF

The USDCHF pair has broken the 0.903 resistance line yet the break has slowed the strong bullish momentum that facilitated the break. The pair may now consolidate within the current range before moves higher. Momentum indicators remain in bullish territory with RSI stalling just below the overbought line.

 

 

 

 

XAUUSD

XAUUSD has stalled before reaching the descending trendline, which has been acting as a resistance level for the metal. Sellers appear to have returned, without any real conviction. Oscillations continue with a downward trajectory. Momentum indicators have flattened in bearish territory.

 

 

 

 

USOUSD

The USOUSD has hit the 63.35 resistance line as bullish momentum begins to climb towards the end of the trading week. Any pullbacks in the rally are typically followed by a spike in buying activity and it is a pattern that seems likely to continue. Momentum indicators remain bullish with RSI flattening at the overbought line. 

 

 

 

 

US500

The US500 has rebounded from the 3857.94 support level as an attempted reversal was met with a rise in buying momentum and the doji candle at the end of the move highlights that favour lies with buyers. Momentum indicators have flattened in bullish territory.