US Dollar Finds Support At Close Of Trading Week

• 16 Jul 2021

USD/JPY

The USDJPY pair has bounced back towards the 109.58 support level where buyers appear to be returning. The pair may now move sideways as there appears to be waning bullish momentum and the rally may not be sustained. Momentum indicators have downward trajectories. 

GBP/USD

The GBPUSD pair continues to bounce along the 1.380 support level. Oscillations are beginning to narrow where we may anticipate a breakout and given the lack of conviction from buyers, a bearish move is most likely. Momentum indicators have upward trajectories.

EURUSD

The Eurodollar continues to come under pressure and despite several recovery attempts from buyers, a bearish bias remains. The next target is the 1.170 support level as the pair moves towards the price line, defined by lower lows and lower highs. Momentum indicators have flattened in bearish territory.

USDCAD

The USDCAD has begun to climb back towards the 1.263 resistance line and bullish momentum remains strong. The move towards this resistance area represents a price recovery after the recent sell-off as support for the US Dollar returns. Momentum indicators are approaching overbought conditions.

XAUUSD

XAUUSD continues to float higher as strong bullish moves appear to fizzle, yet sellers appear to lack the appetite to drive price action. The 1860 resistance line remains as a target, though the question is: will price action reach it? Momentum indicators have upward trajectories, with MACD testing the zero line.

USOUSD

The USOUSD is fading back towards the ascending trendline as bullish support begins to dissipate. The commodity may now head back towards the $60 per barrel range which has proved to be a stabilizing price in the recent past. Momentum indicators have sharp downward trajectories. 

JP225

The JP225 index is making moves towards the 27,596.71 support level, where bullish rebounds typically occur. Longer-term sentiment remains bearish with the descending trendline containing price action. Momentum indicators have downward trajectories.