The USDJPY pair has moved back to test the ascending trendline as yesterday’s trading saw support for the greenback. A break has yet to materialise and therefore bullish conviction will be tested in subsequent trading sessions.
GBPUSD pair continues to descend towards the 1.320 support level which represent the lower bound of the current trading range and where the previous rally was formed. Conviction remains low from sellers and price action is more representative of a lack of buyers than a strong trend forming.
The EURUSD has begun to move rapidly towards the 1,120 support line which has held price action of a previous occasion. The question is; do sellers have the appetite to drive the break? Fundamental factors will have more of an impact than any technical support. Momentum indicators are bearish.
The USDCHF has moved to test the ascending trendline as USD buyers returned to the pair after last night’s FOMC meeting. Bullish conviction has been rising recently, yet the trendline represents a strong resistance area for the pair where, typically, bearish pullbacks take place.
The USDCAD has broken the 1.263 resistance line to return to a previous trading range. Bullish momentum has been climbing rapidly in recent trading not only facilitating the break, but driving the pair beyond the resistance line. Momentum indicators have sharp upward trajectories and highlight further upside potential.
USOUSD has moved beyond the $85 per barrel market as energy demand continues to soar during the winter heating season. Price action has been consolidating at the mid $80 per barrel range and significant bullish conviction will be required to drive price higher. Momentum indicators look to be forming reversals.
XAUUSD has plummeted back below the 1831 support level as a sharp rise in selling pressure followed market events. The longer-term and well-established trajectory for the pair is bullish and therefore we may expect the metal to continue oscillating higher in the absence of any material change in fundamentals.