U.S. Dollar Weakens Towards End Of Trading Week

• 23 Jul 2020

USD/JPY

The USD/JPY pair continues to use the descending trendline as a support level, where buyers have returned, yet there has been no significant change in direction. Momentum indicators have flattened in neutral/bearish territory. 

 

 

 

 

 

EUR/USD

The Eurodollar rally has surged passed the recent price high at 1.149 price level, yet the pair has stalled at a multi-year high at the 1.156 resistance level. Selling pressure has begun at this price level indicating that the bullish momentum is losing steam. Momentum indicators suggest the pair is overbought and therefore the current rally may not last.

 

 

 

 

 

GBP/USD

A GBP/USD pair continues to test the upper trendline of the ascending triangle with buying pressure rising in yesterday’s trading. Typically a bullish breakout is expected of this particular pattern yet another retracement may occur before enough momentum is built to drive the break. Momentum indicators have upward trajectories and RSI has flattened just below the overbought line.

 

 

 

 

 

USD/CHF

The USD/CHF bearish breakout is underway and the next target is the 0.925 support level which represents a recent price low. On previous occasions, a bullish reversal has ensued at this price level. The descending trendline is likely to remain a key resistance area for the pair going forward. Momentum indicators suggest the pair is oversold.  

 

 

 

 

 

USD/CAD

The USD/CAD pair is heading towards a price low at the 1.337 support level, as price action fills a gap created when oil prices sank on low global demand. Despite the lack of buoyancy in oil prices, weakness in the U.S. dollar has resulted in bearish moves for the pair. A rebound may be expected if price action reaches the support line. Momentum indicators are bearish with RSI approaching oversold conditions. 

 

 

 

 

 

GOLD

Gold buyers have found momentum as the metal has blasted passed the 1810.10 resistance line and continues to make new highs. However, there are some signs of a slowdown in momentum and the next few trading sessions will determine whether it is simply buyers taking a breather or the first signs of a price reversal. Momentum indicators are strongly bullish yet RSI is showing signs of a possible momentum reversal.

 

 

 

 

 

OIL

WTI continues to bob along the gap-fill line despite news of further production easing which, under normal circumstances, would illicit a rise in oil prices. Buyers remain active yet not enough to drive a rally or break the resistance level. Momentum indicators have flattened in bullish territory with RSI languishing just below overbought conditions.