HK50 To Resume Previous Rally

• 22 Mar 2021

USD/JPY

The USD/JPY pair appeared to be fading with an inevitable break of the 108.89 resistance level. However, buyers have returned in early trading at the start of the trading week. In the near-term, price action is likely to continue testing the resistance area. Momentum indicators have flattened in overbought conditions.

 

 

 

 

 

GBP/USD

The GBPUSD pair continues to test the lower bound of a recent trading range between the 1.380 and 1.413 price levels. The pair is fast approaching the ascending trendline which has represents a key support area and any test of the trendline will determine the future direction of price action. Momentum indicators have downward trajectories.  

 

 

 

 

 

EURUSD

The Eurodollar looks likely to oscillate between the 1.184 and 1.199 price levels. Neither buyers nor sellers have the conviction to dominate price action in the near-term, yet longer-term, sentiment appears to be bearish. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USDCAD

The USDCAD has begun a reversal which has resulted in a break of the 1.250 resistance line. Bullish conviction appears weak, however, as selling activity began to climb in the previous trading session. The pair may move towards the descending trendline which typically results in pullbacks. Momentum indicators have upward trajectories. 

 

 

 

 

XAUUSD

XAUUSD is testing the descending trendline which has been established as a strong resistance area for the pair. Selling activity has already begun to rise. The next support level is the 1682.37 price line, representing a previous price low. Momentum indicators are languishing in bearish territory.

 

 

 

 

USOUSD

The USOUSD has rebounded from the 59.28 support level after a break of the descending trendline. The break appears to have inspired the revival of buyers which may take price action back towards the $63 per barrel range. Sellers are active in early trading. Momentum indicators have sharp downward trajectories.

 

 

 

 

HK50

The HK50 has, once again, stalled at the ascending trendline indicating that bullish sentiment is forming after a previous breakdown in the rally. Conviction from buyers remains low currently. Momentum indicators are bearish with MACD breaking the zero line.