A Trend Reversal For US500?

• 4 Mar 2021

USD/JPY

The USD/JPY pair has finally broken the 106.05 price level, after several attempts at the resistance area. Despite strong bullish momentum to facilitate the break, recent activity suggests the bullish momentum is waning. Momentum indicators suggest the pair is overbought with RSI testing the 70 overbought line.

GBP/USD

The GBPUSD pair has begun to stall mid-range at the 1,393 price level. The pullback may represent a break in what has been a well-established uptrend since September 2020. Can the Pound continue the rally? Fundamental factors will likely determine the trajectory of the pair. Momentum indicators have flattened in bullish territory. 

EURUSD

The Eurodollar has stalled at the ascending trendline which has been acting as support since late October 2020. A break has not yet materialised indicating sellers currently lack conviction. A bullish rebound is likely if price action moves closer to the apex of the triangle. Momentum indicators have flattened in neutral/bearish territory. 

USDCHF

The USDCHF pair has spiked through the 0.918 resistance line once again, the question is; can the break last? The resistance line has proven to be an obstacle on numerous occasions in the past. Momentum indicators confirm the rally may not last and a reversal seems likely. 

XAUUSD

XAUUSD has hit pause at the 1708 support level as the sell-off begins to lose steam. The testing of the 1700 psychological level is significant, however, with a break taking the metal back towards pre-Covid levels. Momentum indicators are bearish with RSI flattening at the oversold line.

US500

US500 has broken the ascending trendline in the first sign of potential trend reversal. An established rally since the end of October has seen price action begin to consolidate between the 3810 and 3955 price levels, with the ascending trendline acting as support. Momentum indicators have downward trajectories.