USD/CHF Breaks Key Support Area

  • 4 Dec 2019



The USD/JPY reversal has begun to gather momentum, breaking the ascending trendline to the downside. The 108.46 support level is now being tested. A break of the ascending trendline could be significant, signalling a trend change for the pair. Momentum indicators have begun reversals, pulling away from bullish territory. 








The Eurodollar has enjoyed bullish sentiment as buyers returned in emphatic fashion to take price action beyond the 1.107 resistance level. A stall has occurred at this price point, where sellers have previously returned to take price action back below the 1.107 level. Momentum indicators are neutral and fundamental factors are more likely to impact price action. 






The GBP/USD pair has broken a key resistance area at the 1.295 price level. This is significant given the pair has not been beyond this price level since mid-May. The next target will be the 1.309 resistance level, however, with major political events on the horizon, price action is likely to be volatile. Momentum indicators have stalled in bullish territory. 






The USD/CHF pair has sold off to take price action through a series of support levels and to break the ascending trendline. A stall has occurred before the pair could reach the 0.985 support level. A break of the ascending trendline is significant considering it held on a support on three previous occasions. Momentum indicators reflect bearish sentiment, with downward trajectories.  







The USD/CAD pair continues to hug the 1.328 support level as price action has failed to move beyond this level despite a strong rally. Current price action represents a period of exhaustion with neither buyers nor sellers dominating. Given the break of the ascending trendline, bias appears to be slightly bearish. Momentum indicators have stalled in bullish territory.






Silver continues to hug a moderate ascending trendline, as price action rebounded from the 16.85 to test the trendline which now represents a resistance area for the pair. A target for price action is the 17.42 resistance level, however, the near-term direction will be determined by appetite from buyers. Momentum indicators have upward trajectories in response to the bullish bias.  







Gold buyers appear to have an edge in recent price action, taking the metal back to break the 1468.50 resistance level and back towards the 1485.27. The metal is also heading back towards the descending trendline which has been a key resistance area for the pair. Momentum indicators have upward trajectories. 







WTI price action continues to be volatile, with a strong moves by both buyers and sellers. Buyers have determined the direction of price action in recent trading although conviction seems to be waning. Several tests of the 56.76 resistance level have resulted in selling pressure. Overall, in the longer-term, the trend is bullish. Momentum indicators are mixed.





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