A Bullish Breakout For US500?

• 23 Jul 2021

USD/JPY

The USDJPY pair is moving back towards the trendline, where we may expect to see buyers return to take price action back towards the 111.48 price level. Currently, there is a slight bearish bias in price action. Momentum indicators have flattened in neutral territory. 

GBP/USD

The GBPUSD pair is climbing back towards the 1.380 resistance line after a break of the 1.368 price level. Sellers have returned in earlier trading which has stalled the would-be rally. The pair may once again consolidate at the 1.380 support level. Momentum indicators have begun upward trajectories.

EURUSD

The Eurodollar is floating back towards the 1.170 support level as buyers appear to lack the appetite to facilitate a rally. Bearish momentum is weak therefore a break of the recent floor at the 1.170 price level seems unlikely. Momentum indicators have flattened in bearish territory.

USDCAD

The USDCAD sell-off started mid-week and has resulted in a break back below the 1.263 price line. Buyers have since returned and the pair may now oscillate between the 1.245 and 1.263 price levels. Momentum indicators have downward trajectories.

XAUUSD

XAUUSD has returned to the 1795 support level and after several ‘touches’ a break has not materialised. Therefore the metal is likely to continue oscillating within the triangle pattern until moving closer to the apex. Momentum indicators are divergent.

USOUSD

The USOUSD has almost completely recovered after the recent sell-off that signaled a potential trend reversal. Price action has now returned to the $70 per barrel range and has the 75.74 price ceiling in sight. Momentum indicators have upward trajectories.

US500

The US500 index has hit the apex of an ascending triangle and a bullish breakout appears imminent. The 4380 resistance line has contained price action on a recent occasion, yet bullish conviction is strong into the move. Momentum indicators now have upward trajectories.