HK50 Tests Key Resistance Line

• 16 Nov 2021

USD/JPY

USDJPY buyers have begun to lose steam once again, as price action begins to head towards the 114.38 price level. A period of consolidation appears to be forming within this tighter trading range and there appears to be little conviction from buyers or sellers to drive price action. 

 

 

 

 

GBP/USD

GBPUSD buyers currently lack the conviction to drive the rally. Small-bodied candles indicate that sellers lost steam rather than a shift to bullish sentiment. A return to the 1.341-1.358 range is likely, yet longer-term, there is an established bearish bias.  

 

 

 

 

EURUSD

The EURUSD has begun a moderate recovery in the early Asian trading session after several sessions of bearish dominance. Price action stalled at the 1.137 support line and will now head back towards the 1.144 resistance line. Momentum indicators are recovering from oversold conditions. 

 

 

 

 

USDCHF

USDCHF price action has been contained by the descending trendline. Several tests of this resistance area have resulted in a pullback despite strong bullish conviction in the most recent move. Momentum indicators remain bullish with further upside potential, therefore another test may be on the cards. 

 

 

 

 

ASX200

The ASX200 pair has pulled back from the upper bound of a symmetrical triangle as several tests failed to produce a break. A bearish continuation pattern, we may expect to see a bullish break resulting from the tests of the upper trendline. Momentum indicators have flattened in bullish territory.

 

 

 

 

JP225

The JP225 index continues to test the 29,819 resistance line, yet despite several tests, the index has been unable to break the current trading range. A bullish bias has been well-established and the rally has continued despite some moderate sell-offs, therefore a break seems inevitable. Momentum indicators are bullish with further upside potential.  

 

 

 

 

HK50

The HK50 is testing a key resistance zone which has held since the end of June. Previous tests have resulted in bearish pullbacks. However, bullish sentiment has been rising in recent trading with strong conviction from buyers in the most recent run. MACD is testing the zero line and both momentum indicators have upward trajectories.