Eurodollar Tests Key Resistance Level

• 18 Oct 2019

USD/JPY

 

The USD/JPY pair is stuck at the 108.83 resistance line which has inspired the return of sellers. The pair has not closed above this resistance area for the last 5 months. Price action is likely to remain in the 108 price range. Momentum indicators reflect the bullish sentiment, although momentum is turning away from overbought conditions.

 

   

 

 

 

EUR/USD

 

The Eurodollar is heading towards the 1.112 resistance line, which represents a previous support area for the pair. Strong bullish moves suggest that the rally is gathering strength. Momentum indicators have turned bullish with MACD breaking the zero line and RSI pulling away from overbought conditions.   

 

 

 

 
 GBP/USD

 

The GBP/USD pair has broken the 1.274 resistance line and is now testing the 1.288 resistance area, with price action spiking through, but not breaking this previous support area. Momentum indicators remain in bullish territory, however, RSI has reached overbought conditions. 

 

 

 

USD/CHF

 

The USD/CHF pair has pulled back once again to break the 0.989 support level and test the ascending trendline. On previous occasions, price action has undergone a bullish rebound once reaching the trendline. Momentum indicators have downward trajectories. 

 

 

 

 

USD/CAD

 

The USD/CAD pair has returned to break the 1.314 support level which may result in price action heading towards the 1.307 support line. A break is significant as price action has oscillated between the 1.314 and 1.333 price levels in recent trading. Momentum indicators are bearish, yet moving closer to oversold conditions.

 

 

 

SILVER

 

Silver has moved through the apex of a symmetrical triangle which should result in a bullish breakout given the previous trend was bullish. Instead, the metal is languishing at the 17.42 support level with a series of doji candles indicating that there is indecision. Momentum indicators remain in bearish territory.

 

 

 

 

GOLD

 

Gold has been trading horizontally, within a tight trading range recently. Price action has broken the ascending trendline, which indicates sentiment has turned bearish. Price action continues to test the 1485.27 support level. Momentum indicators remain in neutral/bearish territory. 

 

 

 

 

OIL

 

WTI has broken the 53.27 support level with buyers pushing price action towards the $54 per barrel price range. Given the geopolitical tensions, it seems likely that oil price volatility will continue. Momentum indicators have begun upward trajectories.