US Dollar Price Volatility In Mid-Week Trading

• 11 Mar 2020

USD/JPY

The USD/JPY has pulled back after the break of the 104.97 as sellers returned to the pair. Volatility will likely continue until macroeconomic factors subside. Momentum indicators remain in bearish territory although a momentum reversal is underway on RSI.   

 

 

 

 

EUR/USD

The Eurodollar rally has pulled back to the 1.128 support area where a rebound has taken place. The selling activity may be a pullback in the rally and price action may return to test the 1.140 resistance area. Momentum indicators suggest that the pair is overbought with RSI returning towards the 70 resistance line. MACD remains in bullish territory. 

 

 

 

GBP/USD

The GBP/USD pair broke and then returned to the descending trendline where price action also broke a support level at the 1.295 price line. A stall after the break may mean the pair returns to the previous bearish pattern of price action. Momentum indicators have formed upward trajectories.

 

 

 

USD/CHF

The USD/CHF pair has rebounded from the 0.925 support level, yet has stalled just before hitting the 0.942 resistance area. Momentum indicators suggest that the pair is strongly oversold and RSI is moving back towards the 30 support line. 

 

 

 

USD/CAD

The USD/CAD pair has broken the 1.369 price ceiling, despite a long-legged doji candle in previous trading. A bearish start to today’s trading session may be the first indicator of a trend change.  RSI indicates a momentum reversal has begun yet MACD has extended its bullish move.   

 

 

 

SILVER

Buyers have been held at the 17.42 resistance line where price action has pulled back. The 16.83 support level has remained intact, however, with buyers returning early in the session. The metal may remain within this trading range and between these two price levels. Momentum indicators have flattened in bearish territory.

 

 

 

GOLD

Gold buyers are struggling to hold at the 1660 support line as selling activity rises in recent trading. The pullback seems likely to be short-lived given the strength of the longer-term bullish trend. Momentum indicators have flattened in bullish territory with RSI turning away from the 70 resistance area.  

 

 

 

OIL

WTI has begun a reversal after dropping to the $30 per barrel range. Price action would likely stabilize at the $40 per barrel range with the next target being the 43.70 resistance area. A momentum reversal is underway on RSI yet MACD remains strongly bearish.