Eurodollar Tests Key Resistance Level

• 17 Aug 2020

USD/JPY

The USD/JPY bullish move has begun to falter as sellers have returned, albeit with limited conviction. The pair seems likely to bounce along the 106.05 support level for the near-term, as oscillations are likely to remain in range between the 106.05 and 107.94 price levels. The pair will probably struggle to reach the range ceiling at the 107.94 price level. Momentum indicators remain bullish with moderate upward trajectories. 

 

 

 

 

 

EUR/USD

Eurodollar buyers are still active in the pair, with a return to test the 1.184 resistance line. A smaller range has been established between the 1.175 and 1.184 price levels. A break would be significant indicating strong support for the Euro, however, recent trading has represented a period of ‘rest’ in the longer term uptrend. Momentum indicators remain in bullish territory with RSI testing the 70 resistance line.

 

 

 

 

 

GBP/USD

GBP/USD buyers are making another attempt to revive the rally however, sellers remain active. Several tests of the 1.311 resistance level have not resulted in a break, as currently, buyers appear to lack the appetite/reason to drive price action higher. Momentum indicators remain in bullish territory.

 

 

 

 

 

USD/CHF

USD/CHF buyers are struggling to drive a reversal, as sellers return with gusto, to keep price action bouncing around the 0.908 price line. A break has not yet materialized, indicating scant conviction from sellers. Fundamental factors are likely to influence any upcoming trends. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has stalled at the 1.322 support level, which has represented an obstacle for sellers on previous occasions. The USD remains weak against the CAD, as a longer-term downtrend remains intact. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

The Gold recovery has stalled as a number of doji candles indicate that neither buyers or sellers are dominating price action. The metal continues to languish below the $2000 mark, yet there is a well-established, long-term uptrend. An ascending triangle appears to be forming which is another bullish sign. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI buyers have squeezed over the 41.69 resistance line yet volatility is extremely low as denoted by the doji candles. Price action will likely hover over this resistance area for some time as global demand remains persistently low. Momentum indicators have flattened in bullish territory.