Precious Metal Buyers Return

• 17 Feb 2020

USD/JPY

The USD/JPY pair is bouncing along the 109.61 support level as a series of doji candles indicate there is a lack of appetite from both buyers and sellers, hence uncertainty remains. Price action appears likely to oscillate between the 109.61 and 110.19 price levels in the near-term. Momentum indicators have stalled in bullish territory.

 

 

 

 

 

EUR/USD

The Eurodollar sell-off may have decelerated, as denoted by an inverted hammer candlestick indicating a potential trend reversal. The opening price moved higher in early trading today and may form a support level after ten bearish trading sessions. Momentum indicators have flattened and RSI appears to be pulling back from oversold conditions. 

 

 

 

GBP/USD

The GBP/USD pair has rebounded from the 1.295 key support level. The move has also broken the descending price line yet price action has stalled at this resistance area. The next target is the 1.309 price line and a break may mean a reversal of the previous bearish trend. Momentum indicators are languishing in neutral territory.

 

 

 

USD/CHF

The USD/CHF pair is testing the 0.982 resistance level as the rally begins to gather strength, moving beyond a series of resistance levels. A break would send the pair back towards a previous trading range above the 0.985 resistance area. Momentum indicators have upward trajectories with RSI approaching overbought conditions. 

 

 

 

USD/CAD

The USD/CAD pair has pulled back from the 1.330 resistance area and is now testing the 1.325 support area where sellers, once again, appear to be dominating. The next target may be the 1.319 support level which would represent the end of the previous rally. Momentum indicators are pulling back from strongly bullish positions.   

 

 

 

SILVER

Silver has rebounded from the 17.42 price floor and has now pushed beyond the 17.73 resistance level. Price action is heading towards the descending trendline where previously, price action has undergone a bearish pullback. Given macroeconomic factors, it seems likely that price action will follow this pattern once again. Momentum indicators are mixed; with MACD flattening in neutral territory and RSI moving into the buy channel.  

 

 

 

GOLD

Gold buyers have successfully pushed price action towards a previous price high resulting from political tensions in the Middle East. The 1574.28 resistance line, which had represented a hurdle for the metal; has been breached indicating renewed appetite and may result in price action heading towards the 1609.97. Momentum indicators remain in bullish territory. 

 

 

 

OIL

WTI is undergoing a bullish reversal, which has taken price action to test the 52.17 resistance level. It seems likely that the commodity will remain in the $50 per barrel range for the near-term. Momentum indicators remain moderately bullish with RSI pulling away from oversold conditions.