Is The Pound On The Verge Of A Bullish Breakout?

• 21 Aug 2020

USD/JPY

USD/JPY sellers have returned at the 106.05 support level to maintain the 104.67-106.05 trading range. Oscillations within this range may continue especially given the fact that the longer-term bias is bearish. Momentum indicators remain in bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar pullback in recent trading just ignited interest in buyers to return price action back to the 1.184 resistance level. This indicates strong buying appetite and there may be further upside for the pair. Momentum indicators have remain in bullish territory with further upside potential.

 

 

 

 

 

GBP/USD

GBP/USD volatility has increased in recent trading session as buyers and sellers tussle for control of price action. Currently buyers are dominating with the 1.320 resistance line being tested once again. A long-term rally has been established. Momentum indicators are bullish, with RSI testing overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF reversal was short lived as any bullish moves were erased in yesterday’s trading. The pair has failed to make any significant moves away from the 0.908 support level indicating little conviction from sellers, at present. Momentum indicators have moderate upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has moved below the 1.322 support level as any dollar buying was overcome by bearish moves. Given the longer-term trajectory of the pair, favour lies with sellers. Fundamental factors will continue to play a significant role. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

GOLD

Gold buyers are maintaining range as well as the established long-term uptrend. The metal is approaching the apex of an ascending triangle which generally concludes in a strong bullish breakout. Current price action indicates volatility has risen. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI continues to make slow progress yet has maintained its position above the 41.67 support level. The commodity is receiving some support by proxy, as dollar weakness continues.We may expect the current picture to continue for some time to come. Momentum indicators are flat in bullish territory.