A Bullish Rebound On The Cards For The Eurodollar?

• 2 Feb 2021

USD/JPY

USD/JPY price action looks to be on the verge of a change in direction. Rising selling pressure has resulted in the stall of a recent rally and small-bodied candles also indicate a lack of bullish conviction. The current trading range will likely be maintained in the near-term. Momentum indicators are bearish indicating the pair is overbought.

 

 

 

 

GBP/USD

The 1.368 resistance line continues to be a sticking point for the pair with small-bodied candles indicating indecision. Selling pressure has been rising in recent trading yet conviction remains low. Momentum indicators remain in bullish territory but appear to be starting downward trajectories.  

 

 

 

 

EURUSD

The Eurodollar has pulled back to the ascending trendline where, once again, buyers have returned. Typically, bullish rebounds have taken place at this support level, therefore another attempt at the 1.214 price line may be on the cards. Buyers’ conviction will be tested. Momentum indicators have downward trajectories.

 

 

 

 

USDCAD

The USDCAD rally has broken the descending trendline to the upside, however, the break has resulted in a stall in price action. Given the current pattern of price action, the pair is likely to consolidate in range. Momentum indicators have moderate upward trajectories.

 

 

 

 

XAUUSD

The XAUUSD continues to test the 1860 resistance line as well as descending trendline. Tests have resulted in several pullbacks in price action as selling pressure increased with each test. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

USOUSD

The USOUSD has found support at the 52.63 support level and ascending trendline and now the commodity has the 54.48 resistance line in sight. The longer-term bias is bullish and after a period of consolidation the commodity is beginning to climb once again. Momentum indicators remain bullish and continue to test overbought conditions. 

 

 

 

 

ASX200

ASX200 buyers have built enough momentum to drive another test of the 6762 resistance area. Each previous test has resulted in a pullback, however, given the number of tests, a break seems inevitable. Momentum indicators are moving into bullish territory, indicating significant upside potential. 

 

 

 

 

HK50

The HK50 index has rebounded from the 28,036 support level, resulting in a break of the 28,998 resistance area. The break has resulted in the return to a previous range with the 30,300 price area representing a previous ceiling.  Momentum indicators remain in bullish territory.