Bullish Breakout For Gold

• 6 Nov 2020

USD/JPY

The USD/JPY pair has broken out of the descending triangle pattern reaching a new price low at the 103.40 support level. A bullish rebound appears to be underway at this new support level. Fundamental factors are more likely to come into play in determining near-term price action. Momentum indicators are bearish with RSI testing oversold conditions.

 

 

 

 

 

EUR/USD

The Eurodollar still has plenty of buyers as indicated by the sharp rise in buying pressure in yesterday’s trading. However, bullish momentum appears to be slowing with the 1.192 price target in sight. Given the trajectory of price action, the current range seems likely to remain intact. Momentum indicators are neutral. 

 

 

 

 

 

GBP/USD

The ascending trendline remains a key support level and a strong bullish rebound has take price action towards the ceiling of an ascending triangle. We may expect a bullish breakout in near-term trading. Currently, the 1.314 price level remains an obstacle. Momentum indicators are bullish.  

 

 

 

 

 

USD/CHF

The USD/CHF pair has sold off, taking price action back to the 0.903 support level. This represents a strong support level that the pair has not been able to break since July. As a result, we may anticipate a bullish rebound yet not enough to break range. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has also sold off yet, so far, cannot breach the 1.302 price level, despite the established downtrend. A return to the previous trading range between the 1.302 and 1.322 price levels seems likely and oscillations may be contained within this range in the near-term. Momentum indicators are bearish. 

 

 

 

 

 

GOLD

Bullish momentum in Gold has resulted in the pair breaking through the descending trendline and the 1924.49 resistance level. The metal has now returned to a previous range of consolidation. The $2000 price line remains a target and psychological level. Momentum indicators have upward trajectories. 

 

 

 

 

 

OIL

WTI sellers have returned mid-range yet momentum appears to be weak. The commodity appears to be struggling to break into the $40 per barrel range, with price action reaching lower highs. Momentum indicators have stalled in neutral/bearish territory.