WTI Returns To $30 Per Barrel Range

• 5 Oct 2020

USD/JPY

The USD/JPY pair continues to trade within range between the 104.67 and 106.05 price levels. Sentiment is neither positive or negative and the current range will likely remain intact for the near-term. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has failed to clear the 1.172 resistance level despite a moderate revival from buyers. A new range may therefore be established between the 1.149 and 1.172 price levels. Going forward, we may anticipate further stimulus from the ECB which may see the pair move higher. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

 

GBP/USD

GBP/USD buyers are finding support with a moderately paced rally. A target exists at the ascending trendline which has represented a previous support area. Doji candles do indicate some tussle with sellers mid-rally however, therefore, buyers’ conviction will be tested. Momentum indicators have begun upward trajectories.  

 

 

 

 

 

USD/CHF

Given the lack of strength in the USD/CHF rally we may expect the longer term downtrend to resume. The pair is yet to break the 0.918 support areas sellers have been held by a rise in buying pressure. We may expect US Dollar volatility in the near-term. Momentum indicators have downward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair is heading back towards the 1.322 support area as US dollar weakness influences the pair. A resumption of the previous trend may be on the cards as sentiment remains moderately bearish. Momentum indicators have begun downward trajectories. 

 

 

 

 

 

GOLD

Selling pressure at the 1904.89 resistance line has blocked a break. Buyers currently appear to lack the conviction/ rationale to drive price action forward. Further, a break would likely on get as far a s previous consolidation range between the 1904.89 and 2001.77 price levels. Momentum indicators have upward trajectories. 

 

 

 

 

 

OIL

WTI is testing the 36.91 support level which on previous occasions has led to a bullish rebound. Buyers appear to have returned in early trading. The commodity may well struggle to maintain the $40 per barrel range given current economic conditions. Momentum indicators remain in bearish territory.