Bearish Breakout For USD/CHF?

• 1 Sep 2020

USD/JPY

The USD/JPY pair has begun to settle at a lower price range between the 104.67- 106.05 price levels, as a sustained break of the upper bound has not materialised. Longer-term sentiment remains bearish. Momentum indicators have stalled in bearish/neutral territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has broken the 1.192 price high, signalling strong appetite from buyers. The break provides weight to a longer-term rally and new highs are being established after a ‘rest’ in the trend. Momentum indicators are bullish with RSI testing the 70 overbought line.

 

 

 

 

 

GBP/USD

The GBP/USD pair is approaching a longer-term price high at the 1.350 resistance area. Again, dollar weakness is driving the majority of the momentum. The longer-term rally remains intact. Momentum indicators have moderate upward trajectories with RSI testing overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF pair is testing a recent floor at the 0.903 support level and given the descending triangle pattern displayed in the pair a bearish breakout seems imminent. A longer-term bearish bias also exists. Momentum indicators have begun downward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD sell-off continues and the pair has moved to test a long-term price low at the 1.302 support level. The downward pattern of price action has accelerated away from the descending trendline, indicating further downside is likely for the pair. Momentum indicators are bearish, with RSI testing oversold conditions. 

 

 

 

 

 

GOLD

Gold is fast approaching a preliminary resistance area at the 2001.77 price level where sellers have previously returned. Given the ascending triangle pattern a bullish breakout is expected yet may be delayed until the metal moves closer to the apex and oscillations narrow further. Momentum indicators are bullish. 

 

 

 

 

 

OIL

WTI has failed to really test the 43.64 resistance level, with scant conviction from buyers. Price action will likely float along just below this resistance area, until fundamental factors begin to drive price action. Momentum indicators remain in bullish territory, with further upside potential.