The End Of The USD/CAD Rally?

• 5 Mar 2020

USD/JPY

The USD/JPY sell-off has stalled at the 107.01 support line. Buyers have since returned taking price action back towards the 107.93 resistance area. Price action appears to have stalled midway between these two price levels as sellers remain active. Momentum indicators have downward trajectories yet RSI is pulling back from the 30 oversold line.  

 

 

 

 

EUR/USD

The Eurodollar has come under pressure as the rally approaches the 1.120 resistance area which represents a recent top. Selling pressure has taken the pair back below the 1.116 resistance level and towards the 1.112 support level. This could be the first move in a bearish reversal. Momentum indicators have upward trajectories, however, RSI is now pulling back from the 70 overbought line. 

 

 

 

GBP/USD

The GBP/USD pair has once again rebounded from the 1.274 support area, with the rally gaining momentum and price action heading back to the descending trendline. If the rally is once again rejected at the descending trendline, longer-term price action will likely remain bearish. Momentum indicators are moderately bearish.

 

 

 

USD/CHF

The USD/CHF sell-off has lost steam and despite tests of the 0.953 support level, a break is yet to materialize. A series of doji candles indicate indecision with neither buyers nor sellers establishing dominance in the pair. Momentum indicators have sharp downward trajectories, however, RSI is testing the 30 oversold line. 

 

 

 

USD/CAD

The USD/CAD pair remains volatile with buyers and sellers dominating alternate trading sessions. A long-legged doji in yesterday’s trading indicates consolidation in the pair and a new trend may be on the cards. The 1.342 resistance line represents a recent ceiling for the pair. Momentum indicators remain in bullish territory yet RSI has fallen short of overbought conditions.  

 

 

 

SILVER

Buyers have returned to Silver in emphatic fashion, taking price action through several resistance levels yet the metal has fallen short of the 17.42 price line. A series of doji candles suggest that buyers have lost the appetite to drive price action higher. Momentum indicators have flattened in bearish territory. 

 

 

 

GOLD

Gold buyers have returned to facilitate yet another rebound in price action at the ascending trendline. The next target is therefore the 1609.97 resistance level yet price action has pulled short of the resistance area. There remains further upside potential especially given the risk-off sentiment in the markets. Momentum indicators have flattened in bullish territory. 

 

 

 

OIL

WTI has stalled at the $47 per barrel range. After a period of volatility, the market appears to be ‘taking a breather’ with neither buyers nor sellers driving price action. The 49.46 resistance line remains a target and represents a previous support area requiring significant momentum to clear. Momentum indicators have flattened in bearish territory.