Euro Rallies On Stimulus Prospects And Weaker Dollar

• 4 May 2020

USD/JPY

The USD/JPY pair has moved to test the 106.62 support level as sellers begin to dominate price action. Each attempted break has been met with buying activity, yet a clear downtrend has been established. Momentum indicators have turned bearish and are approaching oversold conditions. 

 

 

 

 

EUR/USD

The Eurodollar has begun to rally and is now testing the 1.098 resistance line which appears to be a hurdle for buyers. Despite a spike through the resistance area, price action was unable to break and sellers have since returned. Momentum indicators are mixed; with MACD heading towards the zero line and RSI flattening in bullish territory.  

 

 

 

 

GBP/USD

The GBP/USD pair may be establishing a new trading range as the 1.261 resistance line represents a recent price ceiling. The pair will likely oscillate between the 1.216 and 1.261 price levels in the near-term. Momentum indicators are have flattened in neutral/bearish territory.

 

 

 

USD/CHF

The USD/CHF pair failed at the 0.973 price level as sellers have returned to bring price action back to the 0.961 support level. Attempts have been made to drive price action towards the 0.953 support level, however, sellers appear to lack conviction. Momentum indicators are languishing in neutral territory. 

 

 

 

USD/CAD

The USD/CAD pair has broken the 1.397 support level, as buyers begin to drive the rally. The next target for price action is the 1.423 resistance level, which has represented an obstacle for buyers in the past. Momentum indicators remain in bullish territory. 

 

 

 

SILVER

A series of doji candles indicate indecision in Silver price action. The metal has been stuck between the 14.50 and 15.70 price levels for some time. Momentum indicators suggest that there is a moderate bearish bias yet both MACD and RSI remain in neutral territory.

 

 

 

 

GOLD

Gold has begun to trade in a new range between the 1660 and 1728 price levels. Oscillations have price action moving horizontally in the absence of new fundamental news. Momentum indicators have flattened in bullish territory. 

 

 

 

 

OIL

WTI appears unable to climb back from the 14.03 support level. Each breakaway attempt is met with strong selling activity. The commodity is yet unable to break the 22.706 resistance line as historically low oil prices remain in the absence of a recovery in growth. Momentum indicators have upward trajectories.