Further Upside For USO/USD?

• 5 Jan 2021

USD/JPY

The USD/JPY pair has tested the 103.01 support level on several occasions in the past three trading sessions. A series of doji candles indicate a slowdown in the recent bearish trend. This level currently represents a technical support and hence a buying opportunity. Momentum indicators have flattened in bearish territory.

 

 

 

 

GBP/USD

The GBP/USD pair has stalled at the 1.358 resistance level, as selling pressure has risen at this price high. The pair may now return to a previous trading range as we see whether price action pullback or reverses the bullish trend. Momentum indicators have stalled in bullish territory. 

 

 

 

 

EURUSD

The Eurodollar has made several attempts at the 1.229 resistance level, with price action being held. Despite selling pressure, the trend is yet to reverse. Therefore the pair may consolidate within range between the 1.214 and 1.229 price levels. Momentum indicators remain in bullish territory, yet RSI is pulling away from the 70 resistance line. 

 

 

 

 

USDCAD

The USDCAD pair has rebounded from the 1.269 support level, with buyers returning in yesterday’s trading. The current consolidation range may remain intact, with the 1.290 ceiling in sight. Momentum indicators remain in bearish territory. 

 

 

 

 

XAUUSD

A break of the 1924.49 resistance level and descending trendline indicates strong conviction from buyers. The next target is the 2001.77 price level which represents the top of a previous trading range. Momentum indicators have sharp upward trajectories with RSI testing overbought conditions. 

 

 

 

 

USOUSD

USOUSD continues to test the 49.16 price ceiling, after a moderate pullback over the last week of trading. Conviction from buyers will be required for the commodity to enter into the $50 per barrel range.  Momentum indicators have flattened in bullish territory, with further upside potential.

 

 

 

 

ASX200

The ASX200 is once again testing the descending trendline, which on previous occasions, has resulted in a pullback in price action. Buyers are therefore still active and the next few trading sessions will determined whether the bearish bias will continue. Momentum indicators have downward trajectories.

 

 

 

 

JP225

The JP225 has pulled back to the 27,030.01 support level, where buyers have returned in the early Asian trading session. The current move therefore may simply be a rest before further upside for the rally. Momentum indicators remain in bullish territory yet has pulled away from overbought conditions.