The Eurodollar Is Soaring

• 19 May 2021

USD/JPY

The USDJPY continues to oscillate within the uptrend although oscillations have been narrowing. The ascending trendline will remain as a key support level for the pair. Momentum indicators are bullish, with MACD languishing around the zero line.

 

 

 

 

GBP/USD

The GBPUSD pair has broken the 1.413 resistance level, which is significant, however, bullish momentum remains weak. Overall sentiment is bullish in the longer-term yet the break is unlikely to build any real ground on the established rally. A pullback may be imminent. Momentum indicators suggest that the pair is overbought. 

 

 

 

 

 

EURUSD

The Eurodollar has broken a key resistance level at the 1.217 price line which indicates strong bullish conviction. A recent top exists at the 1.232 price line and the question is whether the bullish move will continue. Momentum indicators show the pair testing overbought conditions. 

 

 

 

 

XAUUSD

XAUUSD has stalled at the 1870 price level, which has previous been a retracement price line. Up until now, sharp bullish momentum has driven the rally, though it remains to be seen if buyers’ appetite can sustain a break and drive price action towards the 1950 resistance area. Momentum indicators suggest the metal is overbought.

 

 

 

 

USDCHF

The USDCHF is testing the 0.898 support area and lower lows and lower highs in price action suggest a break is imminent. A break would see price action returning to recent lows as favour lies with the Swiss Franc. Momentum indicators are bearish with RSI flattening just above the 30 line.  

 

 

 

 

USOUSD

USOUSD sellers are still active despite such an established rally. Oscillations continue with the commodity right at the apex of an ascending triangle. Bullish momentum is expected to continue. A breakout is on the cards. Momentum indicators have flattened in bullish territory.

 

 

 

 

US500

The US500 has rebounded from the ascending trendline as buyers once again returned in support. Recent oscillations have created a stall in the rally, which has flattened considerably, indicating a ‘rest’ period or consolidation before price action inevitably moves higher. Momentum indicators have downward trajectories.