A Bullish Breakout Imminent For USOUSD?

• 6 May 2021

USD/JPY

The USDJPY continues to stall at the 109.09 price level which represented an obstacle in the past for buyers. The pair will likely now remain within the 109.09- 110.69 price range. The longer-term rally remains intact. Momentum indicators are bullish.

GBP/USD

The GBPUSD pair continues to oscillate higher with price action being contained by the ascending trendline. With oscillations narrowing, we may expect a pressure build around the trendline where a breakout may occur. Momentum indicators are moderately bullish. 

EURUSD

The Eurodollar has pulled back to the descending trendline and the 1.198 support level as bearish sentiment, as sellers have returned to drive price action. Sentiment has weakened as a break has not materialised. A break would confirm a resumption of the previous downtrend. Momentum indicators are bearish.

USDCHF

USDCHF buyers have formed a moderate rally despite a rise in selling pressure. A target exists at the 0.922 price level, however, conviction remains weak and the pair may now just languish within the current range. Momentum indicators are bullish. 

XAUUSD

XAUUSD has stalled at the 1778 price line as bullish momentum has faded away. The support level will continue to act as a price floor and the test will be whether the metal can maintain the current price range or move lower once again. Momentum indicators have flattened in bullish territory.  

USOUSD

The USOUSD has tested the 66.75 resistance level once again and a break is yet to materialise. Given the pair is moving closer to the apex of an ascending triangle, a bullish breakout may be anticipated. Momentum indicators have upward trajectories.

JP225

The JP225 has been consolidating in the 28532- 30467 price range and now the pair is rebounding from the price floor as buyers appear to have returned. Conviction will be tested as the pair has been unable to break out of the current range for the last 4 months. Momentum indicators have upward trajectories.