A Bearish Breakout Imminent For USDCAD?

• 10 Mar 2021

USD/JPY

The USD/JPY rally has started to show signs of weakness as sellers returned in yesterday’s trading session. The pair may now languish within the 107.94-109.44 trading range as buyers take a ‘breather’ after such a sharp upward move. Momentum indicators suggest the pair is overbought, with RSI moving beyond the 70 overbought line.

 

 

 

 

GBP/USD

The GBPUSD pair looks set to oscillate within the current range in the near-term, as neither buyers nor sellers appear eager to dominate price action. Momentum indicators have stalled their downward trajectory, flattening in neutral/bullish territory.  

 

 

 

 

 

EURUSD

Eurodollar buyers returned in yesterday’s trading after a brutal sell-off resulting from favour shifting to the US dollar. The 1.184 price line will now act as a key support area for the pair, where such a sell-off was contained. Momentum indicators are bearish, with RSI bouncing along the 30 oversold line. 

 

 

 

 

 

USDCHF

The USDCHF rally has stalled before truly testing the 0.938 price level, as such, the pair has returned to a previous support at the 0.928 price line. The move is likely due to waning support for the US dollar rather than Franc strength. Momentum indicators have flattened in bullish territory, with RSI testing the 70 overbought line. 

 

 

 

 

USDCAD

USDCAD is on the verge of a breakout. A series of small-bodied candles indicate a tussle between buyers and sellers taking the pair right into the apex of a descending triangle pattern- a bearish continuation signal. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

 

XAUUSD

The XAUUSD has broken back above the 1708 resistance line as the metal attempts a price recovery. Bullish momentum remains subdued indicating that a total reversal is unlikely at this point. Momentum indicators are returning from oversold conditions.

 

 

 

 

US500

The US500 continues to test the ascending trendline which was once a key support level for the index. Appetite appears to be returning for buyers which may result in a resumption of the rally, after a brief pullback. A target exists at 3955 resistance level. Momentum indicators are mixed.