Eurodollar Breaks Long-Term Resistance Level

  • 14 Jan 2022


The USDJPY pair continues to march towards the 112.77 support line as price action has reversed since touching the 116.15 ceiling. The pair has also returned to a previous consolidation channel and sellers will need to maintain current conviction in order to drive a break.  






The GBPUSD rally is beginning to lose steam, as small-bodied candles suggest a slowdown and and selling pressure rose in yesterday’s trading session. The pair has returned to a previous trading range between the 1.361 and 1.395 price levels and may be contained within this range in the near-term. 






The EURUSD has broken the descending trendline suggesting strong bullish conviction especially considering this resistance area has held since August 2021. Another target exists at the 1.153 price level which represents a previous support. Momentum indicators signal further upside potential with MACD breaking the zero line.  






The USDCHF is now testing the ascending trendline, where typically sharp bullish rebounds take place. Buying pressure began in the previous trading session to yesterday’s where sellers were still active. The pair has lacked a true trend in last 6 months and this move may be the start of longer-term bearish sentiment.  






XAUUSD price action has flat-lined just below the 1831 resistance line, as it appears buyers lack the conviction to drive a break. Further oscillations appear likely before any bullish breakout can form. Momentum indicators are bullish with RSI approaching overbought conditions.  






NDX100 has broken the 15,675 support line and has now moved to test the ascending trendline. Previous tests of the trendline have resulted in the return of buyers. The next few trading session will determine whether the move is a show of strength from sellers or a short-term break out of the consolidation channel. 






US500 has pulled back to the ascending trendline and given previous tests have been followed by moderate bullish moves, then another rebound may be expected. Overall, an uptrend has been well-established and therefore significant conviction from sellers would be required to reverse the trend. 


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