Eurodollar Set For New Highs?

• 12 Oct 2020

USD/JPY

The USD/JPY pair has rejected the 106.05 resistance area once again, therefore, the pair will likely remain within range going forward. The longer-term downtrend remains intact, with yet again lower highs. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is tracing the ascending trendline as buyers remain active and currently dominate price action. A target exists at the 1.192 resistance area where buyers have been held on previous occasions. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair has finally broken the 1.298 resistance level and the next hurdle for buyers is the 1.311 price level. Buyers’ conviction will be tested as the pair continues to trace the ascending trendline. Momentum indicators have upward trajectories.  

 

 

 

 

 

USD/CHF

USD/CHF sellers have returned with gusto, breaking the 0.918 price level and taking the pair back towards the 0.903 support level. The bearish trend may resume, especially if the pair moves back towards the descending trendline. Momentum indicators have turned bearish. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has broken both the ascending trendline as well as the 1.322 support level and is now heading towards the 1.302 support area. The bearish drive has slowed somewhat and price action may consolidate before testing the recent price low. Momentum indicators are neutral/bearish. 

 

 

 

 

 

GOLD

Gold buyers have returned mid-downtrend to test the 1924.49 price level, which represents a previous support area for the metal. A break of the descending trendline could prove significant as it suggests a change in sentiment, which will be confirm by a break of the 1924.49 price level. Momentum indicators are beginning upward trajectories. 

 

 

 

 

 

OIL

WTI sellers have returned at the 41.69 resistance level and therefore, the commodity may remain in range, as oscillations have failed to produce a break of the 36.93-41.69 range. Momentum indicators remain in neutral territory.