Gold Is Volatile: Rebound Underway

• 13 Aug 2020

USD/JPY

USD/JPY buyers seemed to have gained momentum with a break of the 106.05 hurdle. However, the pace of the rally has slowed mid range between the 106.05 and 107.94 price levels. The pair may oscillate within this range in the near-term. Momentum indicators have sharp upward trajectories. 

 

 

 

 

 

EUR/USD

Eurodollar buyers are still active in the pair resulting in a rebound from the 1.175 support level. The next target will again be the 1.184 price level and oscillations between these two price levels may be the norm going forward. Momentum indicators remain in bullish territory with RSI heading back towards the 70 resistance line.

 

 

 

 

 

GBP/USD

The GBP/USD fade is a moderate one as doji candles signal a lack of conviction from sellers to drive price action. A support level exists at the 1.288 price line. Overall, there is an established longer-term uptrend with an ascending trendline acting as a support level. Momentum indicators remain in bullish territory.

 

 

 

 

 

USD/CHF

The USD/CHF pair has struggled to pull away from the 0.908 support level. Each bullish attempt is met with strong selling activity. Sellers have failed to force a break of the support level, therefore, the current trading range is likely to remain intact. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has moved to test the 1.322 support level as U.S. Dollar weakness strengthens the bearish trend. A break would consolidate the trend, however, the support line has represented an obstacle for the pair on previous occasions. Momentum indicators remain in bearish territory. 

 

 

 

 

 

GOLD

As predicted, Gold rebounded at the ascending trendline, as heavy buying pressure in yesterday’s trading facilitated a recovery from the previous day’s sell-off. Given current volatility, we may expect oscillations to widen within the longer-term uptrend. Momentum indicators remain n bullish territory. 

 

 

 

 

 

OIL

WTI buyers have initiated a break of the gap fill line yet the question remains: how much conviction do buyers have? Previous attempts have been short-lived and volatility in the commodity remains low. The $40 per barrel range will likely remain intact. Momentum indicators remain bullish and indicate there is further upside potential.