U.S. Dollar Weakness Persists

• 14 Aug 2020

USD/JPY

The USD/JPY bullish move seems to have slowed mid-range between the 106.05 and 107.94 price levels. The pair may struggle to reach the range ceiling at the 107.94 price level. Momentum indicators remain bullish with moderate upward trajectories. 

EUR/USD

Eurodollar buyers are still active in the pair. Despite a spike through the resistance area in yesterday’s trading, buyers were contained within the narrow trading range. Given the lack of conviction from sellers to dominate price action, the 1.184 price target remains intact and oscillations between these two price levels will likely continue. Momentum indicators remain in bullish territory with RSI heading back towards the 70 resistance line.

GBP/USD

The GBP/USD fade continues with neither buyers nor sellers showing any appetite to drive price action. The Dollar remains relatively weak yet fundamentals contradict Pound strength. The current trading range will likely remain intact. Momentum indicators remain in bullish territory.

USD/CHF

The USD/CHF pair remains glued to the 0.908 support level as sellers continue to dominate price action. Oscillations will continue in range as there appears to be a lack of bearish momentum that would be required to drive a break of the support level. Momentum indicators remain in bearish territory. 

USD/CAD

The USD/CAD bearish momentum appears to be waning at the 1.322 support level. The U.S. Dollar remains weak, yet there appears to be an absence of CAD buyers currently. A break would strengthen the longer-term downtrend, however, the support line remains an obstacle for the pair. Momentum indicators remain in bearish territory. 

GOLD

The Gold rebound is underway yet the pace of recovery seems to be moderate. A target remains at the 2065.11 resistance area as an established longer-term uptrend remains intact. Given current volatility, we can expect oscillations to widen as the metal navigates current market conditions. Momentum indicators have flattened in bullish territory. 

OIL

WTI buyers have squeezed over the 41.69 resistance line and despite some moderate increase demand for the commodity, supply outstrips demand. The $40 per barrel range is well established and keeps major OPEC producers profitable. Momentum indicators have flattened in bullish territory.