The WS30: A Pullback Or A Reversal?

  • 19 Nov 2020


The USD/JPY pair has broken the 104.29 support level yet price action has stalled mid-range between the 103.40 and 104.29 price levels. There appears to be waning bearish momentum after a strong sell-off during the last week of trading. Momentum indicators remain in bearish territory.








Euro buyers have stalled just below the 1.192 price level. A series of doji candles indicate that recent bullish momentum is starting to slow.  The pair is therefore likely to remain within this range between the 1.160 and 1.192 price levels. Momentum indicators are moderately bullish.







The GBP/USD pair has made little progress since the break of the 1.314 price level. It appears that there is a bullish bias yet there is little conviction from buyers to drive price action towards the range ceiling. The longer-term rally remains intact. Momentum indicators are bullish, with further upside potential.  






The ASX200 has stalled at the 6549 price level and despite several tests, a break has not materialised. Sellers have also not appeared at this resistance area, therefore we may conclude that there is further upside potential if buyers have the conviction to sustain the move. Momentum indicators suggest a potential reversal as overbought conditions have been reached. 







The WS30 index appears to be starting to reverse its position as sellers have returned in the last two trading sessions, taking price action back towards the 29,044 threshold. This threshold represented a previous range’s high and the index may return to these levels if the bearish move continues. Momentum indicators are also undergoing reversals.






The US500 has also pulled back towards the 3574 resistance area. A longer-term uptrend is well-established therefore the current move likely represents a moderate pullback before further buying momentum. How far the pullback drops will be determined by the strength of any breaks of the 3574 price area. Momentum reversals have begun. 






The JP225 rejected the 26,096 resistance level and the pair has also broken 25,882 price line, to return to a previous trading range. The next few trading session will determine whether the break is moderate pullback or the beginning of a trend change. Momentum indicators support a reversal and RSI has broken the 70 line to the downside.


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