Reversal On The Cards For Precious Metals?

• 16 Apr 2020

USD/JPY

The break of the 107.93 support level was short-lived as buyers returned to test the price level once again. A trading range between the 107.93 and 110.19 price levels will likely remain in the near-term in the absence of any major fundamental news. Momentum indicators reflect the bearish sentiment with downward trajectories. 

 

 

 

 

EUR/USD

The Eurodollar has failed to move beyond the 1.089 price level, as sellers remain active in the pair. Clearly, the 1.089 resistance area represents a significant hurdle in the return to a previous trading range. Both MACD and RSI have flattened in bearish/neutral territory.  

 

 

 

 

GBP/USD

The GBP/USD pair has been unable to push beyond the 1.251 price line, with buyers and sellers tussling for control. Price action may remain in this price range going forward unless there are new developments in the virus situation.  Momentum indicators reflect the bullish sentiment, with MACD on the verge of a bullish break of the zero line.

 

 

 

USD/CHF

The USD/CHF pair has once again pulled back to the 0.961 support level and despite selling pressure, price action has rebounded towards the 0.973 resistance area. A moderate U.S. dollar recovery may not last. Momentum indicators have flattened in neutral/bullish territory. 

 

 

 

USD/CAD

The USD/CAD pair has found support as U.S. dollar buyers return to the pair. Price action is now approaching the 1.423 resistance area in a range which may become a new normal. Momentum indicators have stalled in neutral/bullish territory. 

 

 

 

SILVER

The Silver rally has flattened in the first sign of exhaustion from buyers. The metal has failed to reach the 16.14 support level as sellers returned. Momentum indicators have upward trajectories yet the climb also appears to be slowing. 

 

 

 

GOLD

The gold rally beyond the 1700 range has been met with selling pressure as the metal climbs to new highs. Sellers returned yesterday and price action may head back towards the 1692.17 support level. Momentum indicators suggest the metal is oversold with RSI pulling away from the 70 resistance level. 

 

 

 

 

OIL

WTI has failed to clear the $30 per barrel mark as sellers return to the metal. This may be another new normal for the commodity as it fails to move higher despite an output cut from OPEC+. Momentum indicators have stalled in bearish territory.