A Bullish Breakout Ahead For US500?

• 8 Jun 2021

USD/JPY

USDJPY is moving closer to the ascending trendline where buyers have already begun to return. A rebound is expected and the rally will likely continue with the 110.69 price line in sight. Momentum indicators have moderate downward trajectories.

GBP/USD

The GBPUSD pair is testing the 1.418 price level after having dropped below the resistance line. Buyers are still active yet lack the conviction to drive the break. Fundamental factors are keeping GBP buyers cautious. Momentum indicators have moderate downward trajectories.

EURUSD

Eurodollar buyers continue to drive a test of the 1.217 price level, yet a break has not materialised. The bullish bias looks likely to continue which should result in a break of the resistance area, the question is therefore: when? Momentum indicators are divergent; with downward trajectories.

USDCAD

The USDCAD pair continues to bob along the 1.206 support level as oil prices continue to soar. There is further downside potential especially considering both fundamental factors and the clear lack of conviction from US dollar buyers. Momentum indicators have upward trajectories.

XAUUSD

XAUUSD looks set to trace the ascending trendline upwards as bullish sentiment dominates price action. The next target is the 1950 resistance area where a previous price high resulted in a sell-off. Momentum indicators have moderate downward trajectories.

USOUSD

USOUSD is building ground yet is some way from testing the $70 per barrel range despite support. Clearly, bullish sentiment remains moderate and there is currently little appetite to drive the rally. Recent supply increases will likely contain price action within the $60 range. Momentum indicators suggest the commodity is overbought.

US500

The US500 is testing the 4233 resistance line and a break appears imminent given the trajectory of price action and the number of tests of the resistance line. Momentum indicators support the bullish trajectory and indicate there is further upside potential.