Can WTI Buyers Sustain A Rally?

• 3 Jul 2020

USD/JPY

The USD/JPY pair has oscillated between the 105.93 and 107.93 price levels in recent trading and the period of consolidation seems likely to continue. The pair rejected the 107.93 price level once again as sellers returned to keep the trading range intact. Momentum indicators have stalled in neutral territory.

 

 

 

 

 

EUR/USD

Eurodollar buyers have been active in recent trading yet, despite buying pressure, the pair has still failed to clear the 1.124 support level. The tussle between buyers and sellers will continue, with the pair hugging the support line. Momentum indicators are beginning to flatten out in bullish territory.

 

 

 

 

 

GBP/USD

The GBP/USD pair has rebounded from the 1.221 support line as buyers have returned to the pair. The 1.221- 1.261 trading range is therefore likely to remain intact, unless there is enough momentum to drive a break. Momentum indicators are mixed; RSI has resumed an upward trajectory while MACD is testing the zero line.

 

 

 

 

 

USD/CHF

The USD/CHF pair has once again failed at the 0.951 price level as sellers have returned. Oscillations have moved into a narrower trading range between 0.942 and 0.951 price levels. If the narrowing continues, a breakout is likely. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD rally has been reversed as sellers have returned with conviction to take the pair back towards the 1.354 support level. The move could be part of a longer-term bearish bias and a break of the support level would be confirmation. Momentum indicators have moderate upward trajectories. 

 

 

 

 

 

GOLD

Gold buyers have returned and a bullish breakout is underway with the metal clearing a significant obstacle at the 1745.74 price level. However, a pullback may be emerging as sellers return and a series of small-bodied candles represent a deceleration in the rally. Momentum indicators suggests there is further upside potential with RSI flattening just below the 70 resistance level.

 

 

 

 

 

OIL

WTI appears to be making another attempt at the 41.40 resistance line despite scant conviction from buyers. A bullish flag pattern appears to be forming which is generally a continuation pattern. A break would be required for the pattern to be sustained. Momentum indicators have flattened in bullish territory.