The Beginning Of An Oil Price Rally?

• 3 Jun 2020

USD/JPY

The USD/JPY pair has finally been able to push beyond the 107.93 resistance level, as buyers gather momentum. The next test will be the 109.24 price line as the pair returns to a previous trading range. Momentum indicators have upward trajectories. 

 

 

 

 

EUR/USD

The Eurodollar has moved beyond the 1.113 resistance line, as the rally begin to build momentum. A target exists at the 1.124 price level and represents the ceiling of a previous trading range. Momentum indicators have turned bullish with RSI testing the overbought ’70’ line.

 

 

 

 

GBP/USD

The GBP/USD pair has moved to test the 1.261 resistance level which has represented a previous obstacle for the pair. Going forward, the pair will likely continue to oscillate between the 1.208 and 1.261 price levels. Momentum indicators have upward trajectories.

 

 

 

USD/CHF

The USD/CHF pair has returned to test the 0.959 support level as sentiment has turned bearish in recent trading. A stall has occurred at this price level where small-bodied candles indicate indecision. Therefore, sellers appear to have lost steam. Momentum indicators have flattened in bearish territory. 

 

 

 

USD/CAD

The USD/CAD breakout has gathered significant support, taking price action towards the 1.342 support level as the pair returns to previous levels seen before the Covid-19 breakout. Momentum indicators have downward trajectories, with RSI approaching the 30 oversold line. 

 

 

 

SILVER

Silver has pushed beyond the 17.58 resistance level which has represented an obstacle for the metal in the past. The next test is the 18.62 price level, yet sellers have returned in early trading. Momentum indicators appear to be undergoing reversals with RSI heading back towards the 70 resistance line. 

 

 

 

 

GOLD

Gold buyers are still in the game and have been inspired to return after price action touched the 1693.16 support level. A break of the 1728 price level was short-lived as sellers returned to halt the rally. Momentum indicators have stalled in bullish territory.

 

 

 

 

OIL

WTI has finally broken the 34.90 resistance level, which is significant as it represents a gap fill line from the previous downtrend. If price action can reach and break the 41.40 price level we can expect the rally to gain traction. Momentum indicators remain in bullish territory although RSI is testing overbought conditions.