A Potential Bearish Reversal For Gold?

• 18 Sep 2020

USD/JPY

The USD/JPY pair continues to test the 104.67 support level yet, until now, a break has not materialised indicating that whilst sellers are dominating price action, conviction remains low. Bearish short-term momentum reflects the established downtrend. Momentum indicators are bearish with RSI testing oversold conditions.  

 

 

 

 

 

EUR/USD

The Eurodollar continues to oscillate between the 1.723 and 1.192 price levels and these oscillations are set to continue. Consolidation is likely to continue as currently, sellers appear to have little appetite to challenge the longer-term bullish trajectory. Momentum indicators are bullish/neutral.

 

 

 

 

 

GBP/USD

The GBP/USD pair continues to track the ascending trendline as buyers dominate price action. The pair is moving towards a key resistance area where price action rebounded from previously. A break would cement the rally. Momentum indicators are moving out of bearish territory. 

 

 

 

 

 

USD/CHF

The USD/CHF revival has petered out and oscillations are once again narrowing. Given the trajectory of the pair and the pattern of price action we may expect a bearish breakout, yet, the 0.903 support level remains an obstacle for sellers.  Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair continues to test both the 1.322 resistance line and descending trendline, which has proved a hurdle for buyers in the past. Six consecutive doji candles indicate a level of uncertainty in the pair with little justification for bullish momentum. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold continues to trade horizontally, however, a break of the ascending trendline to the downside could be telling. The next few trading session will establish any potential reversal. A bullish revival seems a likely outcome given weak fundamental for the the dollar. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI buyers have taken price action back towards the 41.69 price level. The big question however is; can buyers initiate the break? Previous attempts have been moderate and if WTI is to break the $40 per barrel range, significant bullish momentum will be required. Momentum indicators have sharp upward trajectories.