Bearish Breakout On The Cards For Gold?

• 9 Oct 2020

USD/JPY

The USD/JPY pair has moved to test the range ceiling at the 106.05 price level and the test has inspired the return of sellers. As a result, the current trading range remains intact. The pair continues to trade in a consolidative range. Momentum indicators have assumed upward trajectories.  

 

 

 

 

 

EUR/USD

The Eurodollar is tracing the ascending trendline as momentum remains moderately bullish. The break of the 1.172 resistance area has meant the pair has re-entered a previous area of consolidation. A break out of this area (through the 1.192 resistance level) will give weight to the rally. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair rejected the 1.298 price level, yet it appears that buyers will make another attempt to break the resistance area. Currently, conviction remains low. The next few trading sessions will determine whether the pair languishes in the current trading range or climbs to new highs. Momentum indicators have upward trajectories.  

 

 

 

 

 

USD/CHF

The USD/CHF has stalled at the 0.918 support level with a series of doji candles indicating indecision as neither buyers nor sellers have the appetite to drive a price action. The pair may return to a previous trading range between the 0.903 and 0.918 price levels which took the pair a few months to break. Momentum indicators have turned bearish. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has broken both the ascending trendline as well as the 1.322 support level, marking the end of the short-term rally. US Dollar weakness still dominates the pair which may see a return towards a recent price low at 1.302. Momentum indicators have flattened in neutral territory. 

 

 

 

 

 

GOLD

Gold buyers returned when the metal dropped below the psychological $1900 per ounce level. The metal is moving closer to the apex of a descending triangle, with several tests of the upper trendline not resulting in a break. In this case, we anticipate a break to the downside. Momentum indicators remain in bearish territory. 

 

 

 

 

 

OIL

WTI has found support which has taken the commodity towards the 41.69 resistance level. If a break can be sustained, the pair may once again test the gap fill line. In recent trading, WTI has been unable to move beyond this level to which the asset dropped just after the Covid-19 outbreak. Momentum indicators have diverged; with MACD flattening in bearish territory and RSI forming an upward trajectory.