Are WTI Buyers Able To Drive The Reversal?

• 9 Mar 2020

USD/JPY

The USD/JPY continues to suffer as more news of Covid-19 spread hits the U.S. Strong conviction from sellers took price action beyond the 104.47 support level which represents a recent price low for the pair. A long legged doji represents a point of exhaustion and may hint to a potential bullish reversal. Momentum indicators have downward trajectories and RSI continues to test the 30 oversold line.  

 

 

 

 

EUR/USD

The Eurodollar has found support amidst US dollar weakness which has resulted in the pair climbing towards a price ceiling at the 1.140 price level. A stall in the form of a doji candle mid-rally may be the first indication of buyers losing steam. Momentum indicators suggest that the pair is overbought with RSI overshooting the 70 resistance line. There remains some upside potential as MACD continues an upward trajectory. 

 

 

 

GBP/USD

The GBP/USD pair has broken a mid-term resistance level at the descending trendline which may be significant given recent price patterns. The pair is now testing the 1.309 resistance area as the US Dollar sell-off continues. I price action can move beyond the 1.309 resistance area the uptrend may receive support. Momentum indicators have formed upward trajectories.

 

 

 

USD/CHF

The USD/CHF sell-off continues taking price action back towards the 0.925 support level. Buying pressure held price action above the support line and may indicate waning support for further bearish moves. Momentum indicators suggest that the pair is strongly oversold as RSI has moved beyond the 30 support line. MACD has a sharp downward trajectory. 

 

 

 

USD/CAD

The USD/CAD pair gapped up towards the 1.364 price high. Fundamental news is driving price action in the pair as moves are correlated with oil price moves. Sellers remain present as denoted by the upper shadow in early trading. It is likely that fundamental factors will dominate price action in the near-term. RSI indicates the pair is strongly overbought.  

 

 

 

SILVER

Buyers have been held at the 17.42 resistance line where price action has pulled back. The pair has yet to return to a previous trading range where price action averaged out at the 17.73 price line. Momentum indicators have flattened in bearish territory.

 

 

 

GOLD

Gold buyers have pushed the metal beyond a longer-term price high at the 1687.86 price level. Significant buying momentum remains despite a long legged doji candle in the previous trading session. The next psychological level would be the 1700 range which is within reach especially if the coronavirus continues to have a global impact. Momentum indicators are bullish with RSI approaching the 70 overbought line. 

 

 

 

OIL

WTI continues to struggle moving into a multi-year low at the $32 per barrel level. Given the current economic climate volatility will likely continue. There appears to be some life in WTI buyers as the dragonfly doji candle indicates some selling pressure was absorbed by buyers. This may be an indication of a potential reversal, however, fundamental factors are at play. RSI is strongly oversold and MACD remains bearish.