A Reversal On The Cards For ASX200?

• 17 Aug 2021

USD/JPY

The USDJPY pair is testing a key support level at the 109.02 price line which represents the lower bound of a trading range established since late June. A break would be significant but also unfounded. Buying activity has already risen in the Asian trading session. Momentum indicators remain in bearish territory.  

 

 

 

 

GBP/USD

The GBPUSD pair is hugging the descending trendline downwards as a longer-term bearish trajectory take hold for the pair. Several tests of the trendline have contained price action and therefore price action may continue to head towards the 1.361 price low. Momentum indicators have flattened in neutral territory.

 

 

 

 

EURUSD

The Eurodollar has moved to test the 1.177 support level after once again, rebounding from the descending trendline. Each attempt at a rally has become gradually weaker as a bearish bias begins to dominate the pair. A recent price low exists at the 1.170 support level which may soon be tested. Momentum indicators have stalled in bearish territory.

 

 

 

 

USDCHF

USDCHF sold off at the start of the week, resulting in a break of the descending trendline as bullish momentum could not be sustained. Price action will now head back towards the 0.904 support level. Momentum indicators signal a stall in bearish momentum and a shift in direction, with MACD testing the zero line.

 

 

 

 

XAUUSD

XAUUSD is moving closer to the 1795 target and is currently moving through a previous ‘break’ range where price action ‘rests’ ahead of another bullish move. A break would signify strong bullish intentions. Momentum indicators support bullish sentiment with sharp upward trajectories.

 

 

 

 

USOUSD

USOUSD is dominated by a bearish bias albeit a more moderate one in recent trading. A test of the 66.27 support level did not result in a break and therefore, stronger conviction will be required to sustain the recent move from sellers. Momentum indicators have flattened in bearish territory.

 

 

 

 

ASX200

The ASX200 index has pulled back from the 7617 price high after the most recent bullish which started in late June. The next few trading session will determine whether the move is a retracement or the beginning of a trend reversal.  Momentum indicators are bearish, with RSI pulling away from overbought conditions.