Can Gold Buyers Sustain The Momentum?

• 24 Aug 2020

USD/JPY

The USD/JPY pair appears unable to move away from the 106.05 price level, despite oscillations in price action. Currently doji candles indicate uncertainty in the pair as neither buyers nor sellers appear to be dominating. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

Eurodollar pullbacks appear to be short-term relief in an otherwise well established rally. The retracements appear to go no further than the 1.175 support line, with higher highs following the pullback. Another rebound is expected. Momentum indicators have downward trajectories.

 

 

 

 

 

GBP/USD

The GBP/USD pair appears stuck in range between the 1.311-1.320 price levels. Given the pair has struggled to move much below the 1.311 support level and there is an established uptrend we expect price action to eventually move higher. However, this is not supported by fundamentals. Momentum indicators have downward trajectories.

 

 

 

 

 

USD/CHF

The USD/CHF reversal has flattened into a period of consolidation/horizontal price action. Oscillations are starting lower lows and lower highs indicating their is potential for further downside. Momentum indicators, by contrast, have upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has stalled just below the 1.322 support level, as small bodied candles indicate low volatility in the pair as well as a lack of conviction from both buyers and sellers. Movement in the pair reflects the current subdued nature of oil markets. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold buyers are maintaining range as well as the established long-term uptrend, despite this, the metal is moving close to the ascending trendline where, generally, bullish rebounds occur. Is there enough conviction left from buyers to drive this upward momentum? Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI has flattened, once again, as volatility remains low as can be seen by the doji candles in recent price action. Fundamentals remain the same as a global recovery from the pandemic is underway and output remains low. Momentum indicators remain in bullish territory.