US500 Signaling A Reversal?

• 18 Mar 2021

USD/JPY

The USD/JPY continues to float along the 108.89 resistance level, as price action begins to flatten and bullish sentiment cools. The next few sessions will determine whether the slowdown is a precursor for a reversal or simply a break in the rally. Momentum indicators remain bullish with RSI bouncing along the overbought line.

 

 

 

 

 

GBP/USD

The GBPUSD pair continues to oscillate within a narrow range, as neither buyers or sellers are dominating price action. Horizontal trading will continue until the fundamentals picture changes. The ascending trendline has been established as a key support. Momentum indicators have flattened in neutral/bullish territory.  

 

 

 

 

 

EURUSD

The Eurodollar is once again testing the 1.195 price level, which has represented a hurdle for the pair on a previous occasion. Bullish momentum appears to be climbing and may result in a return to a previous range. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USDCHF

The USDCHF rally has begun a reversal which has resulted in the break of the 0.928 support level. A target exists at the 0.918 support level and selling pressure has been rising in recent trading. Momentum indicators are on a downward trajectory. 

 

 

 

 

 

XAUUSD

XAUUSD has found support and bullish moves are taking the metal towards the 1774.35 resistance line. A longer-term bearish bias is well-established therefore it will require significant conviction from buyers to drive a price recovery. Momentum indicators have sharp upward trajectories.

 

 

 

 

HK50

The HK50 has rebounded from the ascending trendline to now touch the 29,518 resistance line. A bullish bias has been well-established and the rally looks set to continue more moderately after a recent breakdown. Momentum indicators are turning bullish.

 

 

 

 

US500

The US500 has broken the 3955.88 resistance area, yet indecision persists, as buyers fail to drive a convincing break. A doji in yesterday’s trading may suggest bullish momentum won’t last. Momentum indicators have upward trajectories.