USOUSD Reversal On The Cards

• 17 Jan 2022

USD/JPY

The USDJPY pair has pulled back to the ascending trendline, where a bullish rebound appears to be taking place. A spike through the trendline had buyers return to drive price action back towards the 114.33 support line. Momentum indicators have downward trajectories yet the bearish move appears to be decelerating.   

 

 

 

 

GBP/USD

The GBPUSD rally has been contained by the descending trendline in further confirmation of the longer-term bearish bias. Price action may no test the 1.361 support line as buyers appear to have lost steam. Momentum indicators are bullish with RSI signaling that the pair is overbought.  

 

 

 

 

EURUSD

The EURUSD has rejected a resistance area at the descending trendline, as selling activity has begun to rise. The pair had been consolidating recently, with price action moving horizontally and a return to this pattern may be on the cards, especially if sellers lack the conviction to drive the bearish trend.   

 

 

 

 

USDCHF

The USDCHF has rebounded from the 0.908 support level, as buyers have returned at this price line. As a result, the pair will maintain the current consolidation channel with the 0.936 price level representing the upper bound of the channel. Momentum indicators are neutral/bearish. 

 

 

 

 

XAUUSD

XAUUSD price action has begun to pull away from the upper bound of the ascending triangle. Oscillations look set to continue and may narrower further as the metal approaches the apex. A bullish breakout is anticipated. Momentum indicators are moderately bullish and have flattened in the ‘buy’ channel. 

 

 

 

 

USOUSD

USOUSD has moved to test the 83.90 price ceiling as buyers have built solid momentum. Previous tests of this price ceiling have resulted in a bearish rebound, therefore buyers’ conviction will be tested. Momentum indicators have sharp bullish upward trajectories yet RSI is testing the overbought line.  

 

 

 

 

US500

US500 has continued to test the ascending trendline with no break or rally attempt materializing. The reversal attempt appears to have stalled and now sellers’ conviction will be tested. Momentum indicators have downward trajectories with MACD testing the zero line.