XAUUSD Oscillating In Descending Triangle Pattern

  • 21 Oct 2021


The USDJPY pair appears to be at the beginning of a reversal. Selling pressure in yesterday’s trading confirmed that bullish sentiment no longer dominates price action. A series of small-bodied candles represent indecision and indicates that sellers currently lack the conviction to drive the reversal.  






The GBPUSD pair has broken the descending trendline and bullish sentiment looks set to continue as buying pressure has continued to rise into the move. The 1.395 resistance line remains in sight and is a target. This price level has represented the upper bound of the range and an obstacle for buyers in the past. 






The EURUSD pair continues to make attempts at the 1.167 resistance line, as moderate bullish momentum is currently driving price action. The longer-term bearish trajectory remains intact. Momentum indicators reflect bullish sentiment.  






USDCHF has pulled back to the ascending trendline which has acted as a key support level since the beginning of June. A sharp rise in bearish sentiment in yesterday’s trading did not result in a break of the price line, therefore today’s session will determine whether the uptrend will be reversed.  






The USDCAD has sunk to the 1.228 support level, after breaking out of a consolidation channel at the 1.243 support line. The demand in energy markets has weakened the pair, however, a break in the sell-off may be on the cards; with RSI reaching oversold conditions. 






XAUUSD has moved to test the upper bound of the descending trendline once again, as the metal continues to oscillate within the price pattern. A bearish rebound is anticipated given how long this resistance zone has held. Momentum indicators are bullish with MACD testing the zero line.






The ASX200 continues to build on bullish momentum albeit at a more moderate pace. Another test of the price ceiling at the 7617 price line could be on the cards. Momentum indicators are bullish with MACD breaking the zero line to the upside. 


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