ASX200 Changes Direction

• 27 Jan 2021

USD/JPY

The USD/JPY pair remains stuck at the 103.72 support level, which it is yet to move beyond, despite a well-established bearish trend. Clearly, sellers lack the conviction to drive the break. Momentum indicators have stalled in neutral/bearish territory.

GBP/USD

The GBP/USD pair has found support and has broken the 1.368 resistance line to the upside. Whether the break can be sustained is the question. A clear uptrend has been established with little challenge since early September 2020. Momentum indicators have flattened in bullish territory.  

EURUSD

The Eurodollar has failed to move away from the current price level, as a lack of appetite from both sellers and buyers has resulted in the pair floating along the 1.214 price line. The pair is edging towards the ascending trendline, where near-term price action will be determined. Momentum indicators are neutral.

USDCHF

USDCHF continues to consolidate around the 0.887 resistance line as the previous downtrend begins to consolidate within a lower price range. Oscillations are narrow and a breakout seems inevitable and will likely be driven by fundamental factors. Momentum indicators have stalled in bearish territory.  

XAUUSD

XAUUSD is tracing lower after failed attempts at both descending trendline and 1860 price line, as bulls currently lack the conviction. The 1779-1860 range appears likely to remain intact until buyers find the appetite to drive price action beyond these key hurdles. Momentum indicators are neutral/bearish.

ASX200

ASX200 appears to be undergoing a bearish reversal after a series of doji candles indicated the previous break would not be sustained. Price action is currently testing the 6762 price level with a break resulting in a return to a previous consolidative range. Momentum indicators appear to be beginning reversals.