USDCAD Buoyant As USOUSD Falters

• 20 Aug 2021

USD/JPY

The USDJPY pair has rejected the descending trendline which remains as a key resistance zone. Selling pressure began to rise during the test but has since moderated. Price action will likely remain within the current trading range between the 109.02 and 110.66 price levels. Momentum indicators have flattened in neutral territory.  

 

 

 

 

GBP/USD

The GBPUSD pair is testing a longer-term price low in a signal of rising bearish sentiment. A break would confirm a downtrend and rising volumes in yesterday’s trading suggest strong appetite from sellers. Momentum indicators have turned sharply bearish, with RSI approaching the oversold line.

 

 

 

 

EURUSD

The Eurodollar has broken a price low at the 1.170 support level in a significant bearish move. So far, the break is being extended by sellers though real test will be whether current moves can be sustained. Momentum indicators suggest there is moderate scope for further downside, yet RSI is fast approaching oversold conditions.

 

 

 

 

USDCAD

USDCAD is making moves towards a recent price ceiling at the 1.290 price line, after a break of yet another resistance level at the 1.274 price line. A strong bullish breakout in yesterday’s trading highlights strong bullish conviction at the close of the trading week. Momentum indicators suggest the pair is overbought.

 

 

 

 

XAUUSD

XAUUSD has entered a tighter trading range as oscillations have begun to narrow just below the 1795 resistance zone. Price action is beginning to fade lower due to lack of conviction from buyers rather than any real selling pressure. Momentum indicators have flattened in bearish territory.

 

 

 

 

USOUSD

The USOUSD has broken a key support line at the 66.27 price level. Price action is now testing the 63.76 support level which has been contained by buyers. The $60 per barrel area may even be tested indicating significant bearish sentiment in the market. Momentum indicators are bearish.

 

 

 

 

HK50

The HK50 is once again testing a key support level at the 25,029 support level as bearish sentiment begins to rise. A previous attempt at this resistance line did result in a bullish rebound. Overall, a longer-term downtrend is being established and began in mid-June. Momentum indicators suggest the pair is oversold.