Oil Rally Is Building Momentum

• 6 May 2020

USD/JPY

The USD/JPY pair has moved to break the 106.62 support level as sellers begin to dominate price action. Previously, each attempted break has been met with buying activity, therefore it remains to be seen if sellers can maintain conviction. Momentum indicators have turned bearish and are approaching oversold conditions. 

 

 

 

 

EUR/USD

The Eurodollar rally has come to an end with sellers beginning to dominate price action. The next target is the 1.078 support level which represents a recent price floor. Momentum indicators are mixed; with MACD heading towards the zero line and RSI remaining neutral.  

 

 

 

 

GBP/USD

The GBP/USD pair may be establishing a new trading range as the 1.261 resistance line represents a recent price ceiling. The pair will likely oscillate between the 1.216 and 1.261 price levels in the near-term. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

USD/CHF

The USD/CHF pair has failed several times at the 0.973 price level, as buyers once again push price action towards this resistance area. A pullback seems likely as the 0.961- 0.973 trading range remains intact. Momentum indicators are languishing in neutral territory. 

 

 

 

USD/CAD

The USD/CAD pair has broken the 1.397 support level, yet the rally appears to have been short-lived. An evening star doji pattern appears to be forming which indicates near- term bearish price action. Momentum indicators have returned to neutral territory. 

 

 

 

SILVER

A series of doji candles indicate indecision in Silver price action. The metal has been stuck between the 14.50 and 15.70 price levels for some time. Momentum indicators suggest that there is a moderate bearish bias yet both MACD and RSI remain in neutral territory.

 

 

 

 

GOLD

Gold has begun to trade in a new range between the 1660 and 1728 price levels. Oscillations have price action moving horizontally in the absence of new fundamental news. Momentum indicators have flattened in bullish territory. 

 

 

 

 

OIL

WTI has finally pushed beyond the 22.76 resistance line as buyers appear to be building momentum. A target exists at the 30.95 resistance area. Another break of a key resistance line would be significant and represent a second phase of oil price recovery.  Momentum indicators support the bullish bias with sharp upward trajectories.