A Trend Reversal On The Cards For USD/CAD?

• 10 Nov 2020

USD/JPY

USD/JPY buyers returned in emphatic fashion in yesterday’s trading breaking the descending trendline and moving to test the 105.29. The break of the trendline is significant as it has acted as a key resistance area for the pair since May. Momentum indicators have sharp upward trajectories.

 

 

 

 

 

EUR/USD

The Eurodollar has stalled before truly testing the 1.192 resistance line, indicating that oscillations are likely to be contained within the current trading range. Given the fact that we anticipate a rise in US dollar strength, we may expect the Eurodollar to consolidate at this elevated price level in the near-term. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

GBP/USD buyers are beginning to dominate price action and as such, the pair has crossed the 1.314 resistance line. Buyers’ conviction will be tested and the next few trading sessions will determine whether the current range will be maintained. Momentum indicators are bullish.  

 

 

 

 

 

USD/CHF

The USD/CHF sell-off has almost been completely reversed by buyers in yesterday’s trading. The 0.918 resistance line still remains an obstacle for buyers and given current momentum, the pair may struggle to move beyond this price area once again. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD appears to be undergoing a bullish reversal as highlighted by the hammer candlestick to end yesterday’s trading and the recent sell-off. If the pair closes above the 1.302 resistance line; a trend reversal is confirmed. Momentum indicators are bearish, with RSI testing oversold conditions.

 

 

 

 

 

GOLD

Gold sellers erased all gains that had been made by buyers in the last week of trading. The metal has returned to test the 1860.18 support level which has typically resulted in bullish rebounds. The next few trading session will be telling with regards to sentiment. Momentum indicators have stalled in the neutral zone. 

 

 

 

 

 

OIL

WTI appears to have settled back within the 36.93 and 41.69 range despite a test of the range ceiling in yesterday’s trading. Buyers are still active, however, a range break seems unlikely at this point as it is not currently backed by supply and demand fundamentals. Momentum indicators have upward trajectories.