Dollar Strength Contains Major Peers

• 20 Aug 2020

USD/JPY

USD/JPY sellers were stopped in their tracks in yesterday’s trading, as the break inspired the return of buyers to take the pair back to the 106.05 price level. If a break materialises, the pair will return to a previous trading range. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

Eurodollar sellers have returned to take price action back towards the 1.184 support level. The next few trading sessions will establish whether this is a trend change or a retracement. A longer-term rally has been established. Momentum indicators have downward trajectories with RSI moving away from overbought conditions.

 

 

 

 

 

GBP/USD

The GBP/USD pair has moved to test the 1.311 support level in a potential reversal of the uptrend. A break would likely send the pair back towards the 1.288 support level. Momentum indicators have downward trajectories, with RSI breaking overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF downside move was short-lived as buyers returned in emphatic fashion to break the support level and move price action towards the 0.925 resistance area. This may just represent a return to the previous trading range as the Dollar regains strength. Momentum indicators have sharp upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has moved below the 1.322 support level, however, a reversal of sorts is underway as the Dollar finds support. Fundamental factors will continue to play a significant role. Momentum indicators remain in bearish territory with RSI pulling away from the 30 oversold line. 

 

 

 

 

 

GOLD

Gold remains volatile within range as oscillations appear to be widening. The overall trend remains bullish with the ascending trendline acting as support. The formation of an ascending triangle pattern indicates strong bullish potential for the metal. Momentum indicators have downward trajectories. 

 

 

 

 

 

OIL

WTI continues to flatten just above the 41.67 support level and yet the commodity has not really gained any ground in recent trading despite dollar weakness. There remains little appetite to buy oil, given current economic conditions. Momentum indicators are flat in bullish territory.