A Potential Reversal For The Eurodollar?

• 25 Jun 2019

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USD/JPY

 

Dollar weakness has sent the USD/JPY pair further into bearish territory to break the 107.61 support level.  A series of doji candles indicate indecision and often come before a trend change. RSI highlights potential for a trend change having reached oversold conditions.  

 

 

 

 

 

EUR/USD

 

The EUR/USD pair has once again returned to the 1.141 price level as the Euro continues to strengthen against the dollar. This price level represents a previous price high which resulted in a bearish rebound. Momentum indicators remain bullish, with RSI approaching the 70 overbought line suggesting the potential for a reversal.

 

 

 

 
 GBP/USD

 

A price reversal is underway for the GBP/USD pair as price action heads towards the 1.279 resistance line. However, there is some deceleration in the rally, denoted by small-bodied candles, with the rally little to do with Sterling strength and more to do with dollar weakness. Momentum indicators reflect the bullish sentiment with upward trajectories.

 

 

 

USD/CHF

 

The USD/CHF pair has now broken the 0.974 support level, as the dollar continues to suffer. The question is whether the bearish sentiment can continue or is even justified. A previous touch of this level saw price action bouncing back in a bullish direction. Momentum indicators have extended into bearish territory with RSI hitting oversold conditions.

 

 

 

 

USD/CAD

 

The USD/CAD pair has plummeted to the 1.319 support level after a strong dollar sell-off last week. Price action has since stalled around this support level. Sellers will likely take price action to the 1.312 support level before any pullback. RSI has hit oversold conditions with MACD indicating residual bearish sentiment.  

 

 

 

SILVER

 

Silver has gained traction as buyers take price action to test the 15.42 price level. A break of the resistance level was short-lived indicating a lack of conviction from buyers. Selling pressure has risen at this resistance line and hence fundamental factors are more likely to influence a further rally. RSI has already hit the overbought 70 resistance line. 

 

 

 

 

GOLD

 

Gold has found buyers with considerable conviction taking price action well beyond recent price highs and despite a slowdown in trading last week, the appetite from buyers remains strong. MACD has extended into bullish territory and RSI has pushed beyond the 70 overbought zone.  The rally is showing no signs of abating. 

 

 

 

 

OIL

 

WTI has found support in recent trading as geopolitical issues have highlighted potential supply issues. As such this has resulted in price action returning towards the $57 per barrel range. A break of this resistance level is significant as price action returns to a recent trading range. Momentum indicators are bullish. 

 

 

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