The USD/JPY pair has broken several support levels and is now testing the ascending trendline, where once again price action has rebounded back towards the 108.83 resistance level. A longer-term bullish trend is forming suggesting that the previous bearish move was a pullback. Momentum indicators have downward trajectories with RSI approaching oversold conditions.
The Eurodollar has pulled back before reaching the descending trendline, as sellers appear to have returned, taking price action back below the 1.107 support level. The next key level is the 1.102 price area where the pair has previously rebounded. Momentum indicators have upward trajectories.
The GBP/USD pair has broken the descending trendline with a strong bearish move in yesterday’s trading. The pair is now testing the 1.295 support level. On previous occasions, when the pair has approached this support area, price action has rebounded. Each pullback represents a tighter oscillation, from which a breakout is expected. Momentum indicators are in neutral territory.
The USD/CHF pair has begun another reversal with a break of the 0.964 price line and a test of the 0.965 resistance level. The longer-term trend remains bearish and price action may approach the descending trendline and the 0.968 resistance area. Momentum reversals are also underway.
USD/CAD buyers continue to display conviction taking price action back towards a recent high at the 1.330 resistance level. This has represented a key resistance area for the pair on previous occasions, therefore a reversal of the current bullish momentum is to be expected. Selling pressure appears to be building. Momentum indicators are bullish, however RSI is testing overbought conditions.
Silver failed to breach the 18.09 resistance level and price action is now testing the 17.73 support level with potential to move towards the 17.42 price level. Oscillations appear to be widening and a longer-term bearish trend appears to be forming. Momentum indicators have downward trajectories.
Gold has pulled back to the 1574.28 price level as fears related to the coronavirus have been tempered. The fall in price action may only be temporary as a longer-term uptrend is established. Given the trajectory of price action another breach of the 1600 level may be on the cards. Momentum indicators are flattening in bullish territory.
WTI is climbing back towards the 51.14 support level before fully testing the 49.46 support level. Price action may remain at the $50 per barrel range until fears related to the coronavirus subside. Momentum indicators are in strongly bearish territory, yet RSI is pulling back towards the 30 support level.