A Recovery Underway For US500?

• 23 Feb 2022

USD/JPY

The USDJPY pair has once again rejected the ascending trendline which remains intact as a key support level. Another attempt will be made at the 115.41 resistance line, which has been a hurdle to rallies in the past. Momentum indicators have flattened in neutral territory.

 

 

 

 

GBP/USD

The GBPUSD pair will hug the descending trendline downwards, as several attempts at the resistance area have failed to produce a break. Bullish momentum appears to have dissipated and small-bodied candles suggest that neither buyers nor sellers have the appetite to drive price action. 

 

 

 

 

EURUSD

The EURUSD is languishing in no-man’s land, with rising selling pressure indicating a bearish bias but little conviction to drive price action. Until there is a significant change in fundamentals the pair is likely to trade sideways. Momentum indicators have downward trajectories.

 

 

 

 

USDCAD

The USDCAD is floating higher as moderate support returns to the pair. An upper bound of the current consolidation channel remains in sight, at the 1.282 resistance line. Current conviction remains too low to drive a bullish break. Momentum indicators have flattened in neutral/bullish territory.

 

 

 

 

XAUUSD

XAUUSD continues to test the upper bound of the trading range although buyers have lost steam. The 1906 resistance line has successfully contained the rally, so far, as selling begin to return to the metal. Momentum indicators are undergoing bearish reversals.  

 

 

 

 

 

USOUSD

USOUSD has created a new resistance area and price ceiling at the 93.78 price line. Sellers have returned to contain the rally as bullish momentum eventually lost steam. Momentum indicators signify a moderate bearish reversal, with downward trajectories moving away from overbought conditions. 

 

 

 

 

US500

The US500 index has begun to make a bullish recovery and a break of the 4306 support line is the first signal that the pair is returning to a previous price range. Long upper shadows in the last three sessions signal that sellers are still active and that a strong conviction from buyers will be required to drive a rally.