Dollar Buoyant Towards Close Of Trading Week

• 19 Aug 2021

USD/JPY

The USDJPY pair initiated a strong rebounded from the 109.02 price level, as bullish momentum has started to take hold. An obstacle remains at the descending trendline which has typically been a key resistance zone for the pair- containing price action. Momentum indicators have upward trajectories.  

 

 

 

 

GBP/USD

The GBPUSD pair is extending the sell-off further into the current range between the 1.361-1.395 price levels. Whether price action will reach the lower bound of the range will be determined by the conviction of sellers. Momentum indicators have turned bearish, with MACD breaking the zero line.

 

 

 

 

EURUSD

The Eurodollar has broken a price low at the 1.170 support level in a significant bearish move. Conviction from sellers has been strong since the rejection of the descending trendline and could signal a longer-term bearish trend if the break is sustained. Momentum indicators are bearish with RSI approaching oversold conditions.

 

 

 

 

USDCHF

The USDCHF pair has broken the descending trendline, once again, which may signal a shift to bearish sentiment in the longer-term. The next target is the 0.925 resistance line which has also previously contained price action and will therefore serve as a test of bullish conviction. Momentum indicators remain in bullish territory.

 

 

 

 

USDCAD

USDCAD has broken out of a key consolidation channel and is heading towards another resistance zone at the 1.274 price line. A break of this key resistance area would represent a price recovery. Longer-term, there is an established uptrend with the trendline acting as support. Momentum indicators are bullish.

 

 

 

 

XAUUSD

XAUUSD has stalled at the 1795 price line as a series of doji candlesticks indicate indecision and waning bullish momentum. A consolidation channel exists between the 1761-1795 price levels where the metal languishes before larger moves develop. Momentum indicators have flattened in bearish territory.

 

 

 

 

USOUSD

The USOUSD has broken the 66.27 support line in a strong bearish move. The break is significant as there have been several thwarted attempts at this price level. A solid return to the $60 per barrel zone may see the commodity languishing at this stabilizing price level in the near-term especially against dollar strength. Momentum indicators are bearish.