Will The Dollar Revival Last?

• 22 Sep 2020

USD/JPY

The USD/JPY pair has failed to move beyond the 104.67 support level, as buyers have held price action at the support area. Given the longer-term trajectory, we may expect further downside especially with no material improvement in economic conditions. Momentum indicators are bearish with RSI testing oversold conditions.  

 

 

 

 

 

EUR/USD

Eurodollar sellers have returned to take the pair back towards the 1.172 floor. Once again, the pair has been held at the price floor indicating that despite selling pressure, currently there is not enough bearish momentum to drive a trend change. Momentum indicators have downward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair is heading back towards the 1.274 support level as the break of the ascending trendline is sustained. The next few trading sessions will determine the longer-term trajectory for the pair. If a break materialises the pound will likely continue to suffer. Momentum indicators have begun upward trajectories. 

 

 

 

 

 

USD/CHF

The USD/CHF pair has broken the descending trendline to the upside indicating a trend change. Dollar strength has been building for the last couple of trading sessions. If the pair can break the 0.918 resistance line, the rally will gain strength. Momentum indicators have upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has finally broken both the 1.322 resistance line and descending trendline. Given the momentum behind the break we may expect the rally to find more support and move to test the 1.343 resistance area. Momentum indicators have sharp upward trajectories. 

 

 

 

 

 

GOLD

Gold has weakened considerably in recent weeks. Sellers appear to have returned to dominate price action. If the metal breaks the 1904.89 price level we can expect further downside. Momentum indicators have turned bearish. 

 

 

 

 

 

OIL

WTI buyers have taken price action back towards the 41.69 price level where sellers have returned. Interestingly, the correlation between oil prices and USD/CAD appears to have broken down. As far WTI is concerned, the current trading range between the 35.15 and 41.69 price levels is likely to remain intact. Momentum indicators have flattened in bearish territory.