The Pound Breaks Key Resistance Level

• 4 Dec 2020

USD/JPY

The USD/JPY pair is being contained within the 103.40 and 104.29 price levels, as the bearish sentiment continues.  A rejection of the descending trendline indicates that the long-term downtrend will remain intact. Momentum indicators have flattened in bearish territory.

 

 

 

 

GBP/USD

The GBP/USD pair has broken the 1.338 resistance level, which has represented a key obstacle for the pair. The rally may therefore continue at a more moderate pace. Momentum indicators are bullish with RSI testing the 70 resistance line. 

 

 

 

 

EURUSD

The Eurodollar is approaching a longer-term price high at the 1.222 price area, yet the rally appears to be losing steam. A new trading range may therefore be established if the pair can maintain these elevated price levels. Momentum indicators have upward trajectories, with RSI moving beyond overbought conditions. 

 

 

 

 

USDCHF

The USDCHF pair continues the downtrend reaching new recent lows with sellers clearly dominating price action. The move is predominantly led by dollar weakness, rather than Franc strength. Momentum indicators are bearish with RSI testing oversold conditions. 

 

 

 

 

XAUUSD

XAUUSD is returning back towards the 1860 price level which represents the floor of a consolidation channel that held for the last couple of months. Currently, the rally looks to be slowing and a new range may be established between the 1810 and 1860 price levels. Momentum indicators have turned bullish.

 

 

 

 

NDX100

The NDX has moved beyond the 12,423 resistance line which has represented a hurdle for the index in the past, with price action generally retracing at this level. Momentum indicators have flattened in bullish territory with RSI testing the 70 resistance line.