Bearish Reversal For HK50

• 13 Nov 2020

USD/JPY

USD/JPY sellers have returned and the pair is moving back towards the descending trendline. Perhaps moving forward the trendline will act as a support level for the pair, however, bullish momentum appears to be weak currently. Momentum indicators are bearish.

 

 

 

 

 

 

EUR/USD

The Eurodollar is languishing mid range as neither buyers nor sellers are dominating.  Small-bodied candles represent indecision as market participants await changes in the fundamental outlook for the pair. Momentum indicators have stalled at the neutral zone. 

 

 

 

 

 

GBP/USD

The GBP/USD rally was short-lived and sellers have taken price action back below the 1.314 support level. A key support area exists at the descending trendline where, typically, bullish rebounds take place. A trend change seems unlikely given the potential for further upside therefore current moves likely represent a pullback. Momentum indicators are bullish.  

 

 

 

 

OIL

WTI has once again been unable to break out of the long-term range that was established in August where the 43.64 became a range ceiling. Several tests have resulted in a bearish pullback indicating this resistance area remains a key hurdle for buyers. The current range will remain intact until fundamental factors change. Momentum indicators are bullish.

 

 

 

 

 

HK50

The HK50 rejected the 26,539 resistance area and a reversal is underway. Bearish momentum is beginning to build with a break of the 26,176 support line and a test of the 25,942 support level. Momentum indicators are also undergoing momentum reversals.

 

 

 

 

US500

The US500 bearish pullback is beginning and sellers appetite will be tested, revealing whether the move is simply a pullback or the start of a trend change. Long-term, we may expect this confidence index to begin gaining ground especially as economic conditions continue to improve. In the shorter-term however, buyers appear to lack the conviction. Momentum indicators are turning bearish with RSI moving away from overbought conditions. 

 

 

 

 

JP225

The JP225 has stalled at the 25,366 resistance level with smaller bodied candles indicating low volatility and therefore uncertainty. Selling pressure during the bullish move indicates that bears are active and the most likely trajectory from here is bearish. Momentum reversals are underway.