XAUUSD On The Verge Of A Reversal?

• 22 Feb 2022

USD/JPY

The USDJPY pair has pulled right back to the ascending trendline which is a key support level for the pair. Typically, bullish rebounds take place at this price level. Momentum indicators have moderate downward trajectories, with MACD approaching the zero line.

GBP/USD

The GBPUSD pair continues to test the descending trendline, as small-bodied candles suggest the rally has lost steam. The longer-term trajectory is therefore likely to remain intact. Momentum indicators also reflect the loss of bullish momentum as both indicators have flattened in bullish territory. 

EURUSD

The EURUSD continues to float lower, primarily due to a lack of buying activity than any real conviction from sellers. The pair is likely now to languish in the current trading range between 1.113 and 1.144 price levels. Momentum indicators have downward trajectories.

XAUUSD

XAUUSD continues to test the upper bound of the trading range although buyers have lost steam. Selling pressure has begun to rise in the Asian trading session. Momentum indicators suggest that a bearsih reversal could be on the cards as RSI tests overbought conditions.  

USOUSD

USOUSD will make another attempted break of the 92.94 resistance line which also represents a recent high, as the commodity struggles to maintain the $90 per barrel range. Previous attempts have resulted in a pullback, yet buying pressure is strong.  

ASX200

The ASX200 index has returned to test the 7093 support level where previously, bullish rebounds have followed. A gap down suggests a strong bearish bias at the start of the trading week. Momentum indicators are bearish reflecting the trajectory of price action.