Pound Breaks Recent Price Ceiling

• 31 Aug 2020

USD/JPY

The USD/JPY pair continues to oscillate around the 106.05 support level, which was breached in the previous trading session as bearish momentum has risen. Another support area exists at the 104.67 price level which may become the floor of a new trading range. Momentum indicators have stalled in bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar is again testing a previous price high at the 1.192 resistance area, where a bearish rebound previously took place. A new range may be established between the 1.172 and 1.192 price levels as the pair undergoes a ‘cooling-off’ period. Overall, a long-term rally has been established. Momentum indicators have flattened in bullish territory.

 

 

 

 

 

GBP/USD

The GBP/USD pair is continuing to make ground as strong bullish momentum is elevated by dollar weakness. As such, the 1.329 resistance area has been breached as the long-term uptrend begins to gather pace. Momentum indicators are flat in bullish territory, however, RSI is testing overbought conditions.

 

 

 

 

 

USD/CHF

The USD/CHF pair is testing a recent floor at the 0.903 support level as bearish momentum continues in the pair. A break has not yet materialised, however, perhaps representing a period of exhaustion for sellers before a break lower. Longer-term sentiment is bearish. Momentum indicators have flattened in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD sell-off continues albeit at a fairly moderate pace. The pair is coming close to testing a long-term price low at the 1.302 support level. Recent moves provide further weight to the longer-term downtrend. Momentum indicators remain in bearish territory, with RSI testing oversold conditions. 

 

 

 

 

 

GOLD

Gold has once again undergone a bullish rebound; bouncing off the ascending trendline. Oscillations continue to narrow with the metal making lower highs as price action moves sideways. A breakout may be imminent, with the next target at the 2001.77 price line. Momentum indicators have flattened in bullish territory. 

 

 

 

 

 

OIL

WTI remains elevated as dollar weakness persists. The commodity continues to hover just below the next target line at the 43.64 price level. If oil can break this threshold, the rally may gain momentum. Momentum indicators remain in bullish territory, with further upside potential.