Can Eurodollar Buyers Force A Break?

• 13 Jul 2020

USD/JPY

The USD/JPY pair has oscillated between the 106.51 and 107.94 price levels in recent trading, with a series of small-bodied candles suggesting no real conviction from buyers or sellers. A moderate long-term downtrend has formed and buyers seem unwilling to challenge at this point. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

 

 

EUR/USD

Eurodollar buyers have returned and the question is whether the pair can drive a break at the 1.137 resistance line. Several touches of the resistance line have not resulted in a break as selling pressure rose. Momentum indicators have moderate upward trajectories in support of the rally.

 

 

 

 

 

GBP/USD

The GBP/USD pair has rebounded from the ascending trendline, as price action forms an ascending triangle pattern. A breakout is more likely the closer to the apex and buyers have returned to the pair with conviction. Momentum indicators have turned bullish with RSI approaching overbought territory.

 

 

 

 

 

USD/CHF

The USD/CHF pair has broken a key support level at the 0.943 price level, where previously, sellers had been held. A descending triangle pattern indicates that there will be a continuation of the bearish moves in line with a longer-term downtrend. Momentum indicators are bearish with RSI flattening just above the oversold line. 

 

 

 

 

 

USD/CAD

The USD/CAD rejected the 1.368 resistance line as buyers have been unable to overcome the ceiling of this trading range. A longer-term downtrend has formed and price action is flat-lining mid-range. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

Gold has broken the 1779.97 resistance line as buyers appear to have regained strong conviction. A support level exists at the ascending trendline, yet several touches have ignited further bullish momentum. Momentum indicators are strongly bullish with RSI testing overbought conditions.

 

 

 

 

 

OIL

WTI appears to be making another attempt at the 41.69 resistance line despite scant conviction from buyers. The resistance represents the ‘gap-fill’ line, which is particularly significant, as it represents a complete price recovery to a trading range established before the Covid-19 sell-off. Momentum indicators have flattened in bullish territory.