NDX100 Pullback To Key Support Line

• 6 Dec 2021

USD/JPY

The USDJPY pair has failed to move away from the 112.77 support line and ascending trendline. Heavy selling pressure to end the last week of trading did not result in a break, indicating strength from buyers in containing price action. Momentum indicators are changing direction to form upward trajectories.

GBP/USD

The GBPUSD pair has struggled to form a credible rally as selling activity has dominated recent price action. Buyers have returned in early trading and given that the bearish move has lasted since mid-October, significant conviction will be required. Momentum indicators suggest the pair is oversold.

EURUSD

The EURUSD rally has lost momentum, yet at the same time, sellers do not appear to have the appetite to drive price action lower. Hence, price action is floating sideways waiting for new developments in fundamentals. Momentum indicators have flattened in bearish territory. 

USDCAD

The USDCAD has stalled at the 1.282 resistance line. Despite mounting pressure from buyers, a break has not materialised and therefore a reversal is likely imminent. Momentum indicators have reached overbought conditions further signaling the potential for a reversal. 

XAUUSD

XAUUSD price action is beginning to turn bullish and climbing away from the ascending trendline, which has represented a support zone since August. A resistance zone is in sight at the 1831 price level yet it remains to be seen whether buyers have the conviction to drive the rally.  

USOUSD

The USOUSD index has climbed back towards the 66.45 resistance line and a moderate break has begun to find support in the early Asian trading session. Sellers remain active and price action will be governed by fundamentals in the near-term. Momentum indicators are undergoing reversals. 

NDX100

The NDX100 index has begun to pull back from the 16,590 resistance line, as tech sector growth begins to lose momentum. Price action is now heading back to the 15,675 support line and a break appears imminent, given the recent rise in selling activity. Momentum indicators are bearish.