The USD/JPY pair continues to use the descending trendline as a support level and several tests by sellers have facilitated a move lower by sellers. The pair has also turned back towards the 106.05 support level. Momentum indicators are bearish.
The Eurodollar rally has surged passed the multi-year price high at 1.156 price level, only to test another long-term high at the 1.162 resistance line. Candlestick patterns suggest that bullish momentum may be waning and the current rally may be short-lived. Momentum indicators suggest the pair is overbought.
The GBP/USD pair continues to test the upper trendline of the ascending triangle with buying pressure rising in yesterday’s trading. Currently buyers appear to lack the momentum required to drive a break, as denoted by the small-bodied candles. Momentum indicators have upward trajectories with RSI testing the overbought line.
The USD/CHF pair is now testing a recent price low reached during the initial low of the coronavirus outbreak. Dollar sellers have returned in emphatic fashion taking the pair below the 0.925 support level. It remains to be seen whether the bearish move will stall at this price level or will continue. Momentum indicators do not yet show signs of reversal.
The USD/CAD pair has stalled at a recent price low at the 1.337 support level. A doji candle in yesterday’s trading may be the first sign of a potential reversal. A longer-term bearish trend has been established. Momentum indicators are bearish with RSI approaching oversold conditions.
Gold buyers have found momentum as the metal has blasted passed the 1810.10 resistance line yet bullish momentum appears to be slowing at the 1885 price level. The direction of today’s trading session will be important in determining near-term price action given the tussle between buyers and sellers in yesterday’s trading. Momentum indicators remain bullish yet RSI is showing signs of a possible momentum reversal.
WTI is stuck to the gap-fill line (just below the trading range established before the covid-19 outbreak) and despite output cuts from OPEC being extended, price action has barely moved in recent weeks. Until economic uncertainty starts to dissipate and global demand starts to rise, the commodity will likely remain at this price level. Momentum indicators have flattened in bullish territory.