Eurodollar Sell-Off To Start The Trading Week

• 9 Mar 2021

USD/JPY

The USD/JPY rally has got wings with strong bullish moves and a sharp exponential. The next target is a one year high at the 109.44 price level. The recent pace of the price recovery seems like it may quickly become overstretched. Momentum indicators suggest the pair is overbought, with RSI moving beyond the 70 overbought line.

 

 

 

 

GBP/USD

The GBPUSD pair has pulled back towards the 1.373 support level as dollar strength halted the rally. The pair may now stabilize within the 1.373- 1.413 range. Momentum indicators have turned sharply bearish with MACD approaching the zero line. 

 

 

 

 

 

EURUSD

The Eurodollar has sold off in emphatic fashion breaking the 1.192 support level and testing the 1.184 price line. A break would see the pair return to previous price lows seen during lockdown periods. Momentum indicators are bearish, with RSI touching the 30 oversold line. 

 

 

 

 

 

USDCHF

The USDCHF pair has surged towards a long-term price high at the 0.938 level, at a series of points along the rally, bullish momentum has been waning. However, buyers have support as the US dollar comes back into favour. Momentum indicators are bullish, with RSI moving beyond the 70 overbought line. 

 

 

 

WS30

WS30 has recovered from a pullback towards the ascending trendline which has cemented the rally. Price action is now, once again, testing the 31,982.03 resistance line and buyers conviction will be tested. Momentum indicators have upward trajectories.

 

 

 

 

HK50

The HK50 has stalled at the junction of the 28,328.20 support line and ascending trendline. Buying pressure appears to be rising as the support area remains intact. Momentum indicators have stalled in bearish territory and look to be on the verge of upward trajectories.

 

 

 

 

HK50

The HK50 has pulled back to test the lower bound of a previous trading range. Given the lack of strong bearish moves the pullback is likely due to waning bullish sentiment. A break of the 28825 price level may give weight to the bearish move. Momentum indicators have established downward trajectories.