The Pound Tests Key Support Level

• 21 Oct 2020

USD/JPY

The USD/JPY pair has failed to move beyond the 105.29 price level, which has represented a key support area in the past. The longer-term trend remains bearish and there appears to be no imminent threat to that trajectory. Momentum indicators have flattened in bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has found support at the 1.172 support level and ascending trendline and buying momentum appears to be moderate. The pair is now re-entering into a previous consolidation channel. Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair appears to be tracing the descending trendline in recent trading. A test of the 1.298 resistance level has not resulted in a break, therefore the bearish bias seems likely to continue. Momentum indicators are neutral.  

 

 

 

 

 

USD/CHF

The USD/CHF pair is heading back towards a recent price low at the 0.903 support level. Generally, this price area results in a bullish rebound, as the floor of a consolidative channel. Momentum indicators have downward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair has rejected the 1.322 resistance line as the current trading range remains intact. Price action is currently heading back towards 1.302 support level. Momentum indicators have also resumed downward trajectories. 

 

 

 

 

 

GOLD

Gold is once again testing the 1924.49 price level which represent a previous support level of a consolidation period. It appears that buyers are building momentum yet the support level remains a key hurdle to the rally. Momentum indicators have begun upward trajectories. 

 

 

 

 

 

OIL

WTI continues to test the 41.69 price level more due to lack of dollar strength than conviction from buyers given the small-bodied candle in recent trading. A break is highly unlikely in the near-term given no real change in fundamentals. Momentum indicators have flattened in neutral/bearish territory.