The Pound Finds Support In Mid-Week Trading

• 26 Feb 2020

USD/JPY

The USD/JPY sell-off has taken price action back towards the 110.19 support level which represents a previous resistance area. A break would be significant for the pair as it would mean reentering a previous trading range. The question is whether the uptrend will continue, perhaps at a more moderate pace. Momentum indicators have downward trajectories.  

 

 

 

 

EUR/USD

The Eurodollar recovery is underway with price action testing the 1.088 resistance line, which represents a longer term support level. A break into the previous trading range would confirm the reversal. Momentum indicators support bullish sentiment with upward trajectories. 

 

 

 

GBP/USD

The GBP/USD pair has broken the descending trendline which has been acting as a resistance area. If the break can be sustained it could prove significant as it represents a reversal of a medium-term downtrend. The next target is the 1.309 resistance level. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

USD/CHF

The USD/CHF pair has moved to test the 0.973 support level with a break confirming the downtrend that has been forming, despite a revival in recent trading. This support line has represented a strong resistance area in the past indicating that if a break takes place, significant momentum may be required to move beyond this price area. Momentum indicators have downward trajectories. 

 

 

 

USD/CAD

USD/CAD volatility continues as the petrocurrency is influenced by geopolitical events relating to oil prices. Once again, the pair is testing the 1.330 where bearish rebounds have occurred on previous occasions. A new range may have been established between the 1.321 and 1.330 price levels. Momentum indicators have flattened in bullish territory.  

 

 

 

SILVER

Silver’s reversal took place in yesterday’s trading taking price action through a series of support levels, stalling after the break of the 18.09 price level. Buyers have since returned indicating the sell-off has lost momentum. Price action may return to a previous trading range between the 17.42 and 18.09 price levels. Momentum indicators have pulled back yet remain in bullish territory.  

 

 

 

GOLD

Gold buyers have been impeded by a rise in selling action denoted by the long upper shadow in previous trading followed by further bearish sentiment in yesterday’s session. The shooting star pattern that has formed in the uptrend appears to be playing out hinting to a bearish reversal. Buyers are still active. Momentum indicators remain in bullish territory, however RSI is undergoing a momentum reversal. 

 

 

 

OIL

WTI volatility continues as the commodity struggles to maintain the $50 per barrel range. Despite some activity from buyers the commodity has returned to the 49.46 support level. A trading range is being established between the 49.46 price floor and the 54.10 ceiling. Momentum indicators remain in bearish territory.