A Bearish Breakout Imminent For HK50?

• 31 Aug 2021

USD/JPY

The USDJPY pair will trace the trendline downwards as a recent bullish attempt has, once again, not resulted in a break. Oscillations are narrowing and the pair is moving closer to the apex where we may anticipate a breakout.  Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

GBP/USD

The GBPUSD pair is losing steam in the rally as defined by small-bodied candles which indicate waning appetite from buyers. Price action may test the trendline where a retracement is expected. Momentum indicators have moderate upward trajectories.

 

 

 

 

EURUSD

The Eurodollar has stalled after the break of the 1.177 resistance line as a doji candle in yesterday’s trading highlights waning bullish momentum. The break is significant as it represents a key resistance level which has held since May. The question is whether the break can be sustained. Momentum indicators are bullish. 

 

 

 

 

USDCHF

The USDCHF will continue to be volatile, as price action ebbs and flows to the 0.916 trendline which is currently containing bullish moves. Another rejection further compounds the strength of resistance of the trendline and represents a key target for future rallies. Momentum indicators have stalled in neutral territory.

 

 

 

 

XAUUSD

XAUUSD rally has been subdued by rising selling activity after the break. Buyers’ conviction will be tested yet fundamental factors are likely to have a larger impact on price action going forward. The 1860 resistance zone remains a target as the upper bound of a consolidation channel. Momentum indicators are bullish.

 

 

 

 

USOUSD

The USOUSD will likely not return tot he $70 per barrel range in the near-term. Despite buying pressure in yesterday’s trading bearish sentiment has prevailed. Oscillations within the $60 per barrel range will continue with the 66.26 support level representing the lower bound of the range. 

 

 

 

 

HK50

The HK50 is pulling back towards the 25,029 support level as bearish sentiment begins to rise. Several tests of this support level indicate that break is highly probable especially given that a clear downtrend has been established. Momentum indicators have flattened in bearish territory.