Dollar Revival Dominates Mid-Week Trading

• 9 Sep 2020

USD/JPY

The USD/JPY pair has struggled to move beyond the 106.05 support level, as such, sellers are testing the price line once again. Another key support level exists at the 104.67 support line and with both currencies remaining weak, a change in fundamentals will be required to drive a change. Momentum indicators have stalled in neutral territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is approaching the floor of a recent trading range at the 1.172 price level, where on previous occasions, a bullish rebound has taken place. The 1.172-1.192 trading range may therefore remain intact as current price action reflects a break in the longer-term rally. Momentum indicators have downward trajectories.

 

 

 

 

 

GBP/USD

GBP/USD sellers are dominating current price action with another break, this time of the 1.311 support line. Price action is now heading towards the ascending trendline which will be a pivotal point for the pair, with a break suggesting a trend change. Momentum indicators have begun sharp downward trajectories.

 

 

 

 

 

USD/CHF

The USD/CHF pair is testing the descending trendline despite waning bullish momentum. The next few trading sessions will determine if buyers have enough conviction to drive the break. A strong downtrend has been established since the beginning of June. Momentum indicators have sharp upward trajectories. 

 

 

 

 

 

USD/CAD

USD/CAD buyers have established dominance and a bullish reversal is underway. Price action is testing the 1.322 resistance area which is also within range of the descending trendline. Any future trends will be determined in the next few trading sessions and whether a break is sustained. Momentum indicators have begun upward trajectories. 

 

 

 

 

 

GOLD

Small-bodied candles forming around a support level indicate a potential breakout. The question is: will the breakout be bullish or bearish? The dollar revival has put the metal under pressure, yet given current fundamentals we may expect the revival to end swiftly. Therefore the current slowdown may just represent a period of exhaustion in the uptrend. Momentum indicators have flattened in neutral territory. 

 

 

 

 

 

OIL

The WTI sell-off continues as the commodity begins to move towards the 35.15 price level and the $30 per barrel trading range is established. The closing towards this support level indicates the return to Covid-19 breakout prices and the gap fill has been reversed. Momentum indicators are bearish with RSI breaking the 30 support level.