Euro-Area Currencies Hold Ground

• 26 Aug 2020

USD/JPY

The USD/JPY pair continues to test the 106.05 price level, yet in the last 4 trading sessions, a break has not materialised. Buyers remain active but not with enough conviction to drive price action. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is moving to test the 1.184 resistance area which has proved to be a hurdle of previous occasions. The range between the 1.175-1.184 price levels will likely remain intact. Current moves represents a cooling off period for the pair after a sharp rally. Momentum indicators have downward trajectories.

 

 

 

 

 

GBP/USD

The GBP/USD pair is still clinging to the 1.311 price line as buyers return to maintain the 1.311-1.320 trading range. A ceiling exists at the 1.320 resistance area, which price action has yet to move beyond, despite several previous attempts. Momentum indicators have moderate downward trajectories.

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to be held at the 0.908 support level as there appears to be just enough buying pressure to block a full break. However, a downtrend is well-established and perhaps another break is just a matter of time. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD is bouncing along the 1.320 price area as neither buyers nor sellers are dominating and the longer-term downtrend has mostly been due to dollar weakness. Bearish sentiment will continue until economic conditions improve, yet any downward pressure on prices will likely to be moderate/spillover effects. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold appears to be going through a period of consolidation in price action as oscillations narrow and doji candles indicate the potential for a breakout. Price action is moving closer to the ascending trendline where we may anticipate a bullish rebound. Momentum indicators have bearish trajectories. 

 

 

 

 

 

OIL

WTI is benefiting from continued dollar weakness which is now resulting in a slight elevation in oil prices. The rally is tame and will likely flatten out at the first sign of a dollar ‘recovery.’ Momentum indicators remain in bullish territory.