Dollar Weakness Persists

• 5 Aug 2020

USD/JPY

The USD/JPY pair has moved to test the 106.05 resistance level, yet sellers have returned to have another attempt at the 104.67 support area. A new trading range may be established between these two price levels. Oscillations seem likely to remain in this trading range, for the near term. Momentum indicators remain in bearish territory. 

 

 

 

 

 

EUR/USD

The Eurodollar reversal appears to have been short-lived, as buyers have returned at the 1.175 price level. Buying pressure remains, as there appears to still be appetite to drive price action higher. Whether there is enough momentum to move beyond the 1.184 price level will become apparent in the following trading sessions. Momentum indicators have flattened with RSI bouncing along the 70 overbought line.

 

 

 

 

 

GBP/USD

The GBP/USD pair has pulled back from the 1.311 resistance line yet, a series doji/small-bodied candles indicate indecision, just below a recent price high. The stall could represent a break before moves higher, however, bullish moves beyond this resistance area would require significant momentum is yet to be established. Momentum indicators suggest the pair is overbought.

 

 

 

 

 

USD/CHF

The USD/CHF pair has failed to make significant moves away from the 0.908 support level, as sellers appear dominant in current price action. Price action may struggle to move out of this trading range and may only be possible when favour switches back to the U.S. Dollar. Momentum indicators have stalled in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has resumed the downtrend, with the break of significant support level at the 1.333 price area.  With little movement in the commodities markets, U.S. dollar weakness is dominating price direction currently. A long-term bearish trend is well established. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold buyers still dominate price momentum, as the metal surged passed the 1975.67 resistance line. Sellers appear to have found some appetite in early trading, however, fundamentals are on the side of the bulls. Momentum indicators are looking strongly overbought.

 

 

 

 

 

OIL

WTI is stuck to the gap-fill line and without a break, the commodity is unlikely to gain any traction in the near-term. Low volatility in price action and absence of oscillations reflects the oversupply issue that has plagued oil markets for the last few years. Momentum indicators remain in bullish territory.