A Bearish Breakout On The Cards For EURUSD?

• 2 Nov 2021

USD/JPY

The USDJPY pair will be contained within the current tight trading range in the near-term as selling pressure rises each time the pair attempts a break. Currently, bullish conviction remains too weak to drive the rally forward, which has since broken down into horizontal trading.   

GBP/USD

The GBPUSD pair has pulled back towards the 1.361 support line which also represents the lower bound of the trading range. Doji candles represent indecision and suggest that sellers have lost steam after a sell0off to end the previous trading week. 

EURUSD

The EURUSD has rebounded from the 1.153 support line and price action looks set to oscillate between the descending trendline and the support level. Given the long-term trajectory and the descending triangle pattern, a bearish breakout may be imminent. 

USDCHF

The USDCHF has broken both the ascending trendline and the 0.910 support line, as a bearish bias has overcome the pair since a rejection of the 0.935 price ceiling. Bullish momentum has begun to climb in today’s trading and another break may be on the cards. Momentum indicators remain in bearish territory.   

USOUSD

USOUSD will make another attempt at the 83.90 price high, as bearish moves tend to be short-lived and met with rising buying pressure. Still, conviction from buyers remains weak as denoted by a series of small-bodied candles into the rally.   

HK50

The HK50 has rejected the 25,029 support line once again as a bullish rebound keeps the trading range intact. A bearish bias remains with lower highs and it is only a matter of time before the support level is tested again. Momentum indicators have flattened in neutral/bullish territory.