US Dollar Strength Subsides

• 28 Sep 2020

USD/JPY

The USD/JPY pair has rebounded from the 104.67 support level, yet the bullish momentum has not been strong enough to facilitate a break of the range ceiling at the 106.05 price level. The long-term downtrend remains intact. Momentum indicators have flattened in neutral/bearish territory.  

 

 

 

 

 

EUR/USD

The Eurodollar has broken the 1.172 price level which represents the end of several months of consolidation. The bearish break has been sustained albeit at a slower pace. A new range between the 1.149-1.172 price levels has been established. Momentum indicators have downward trajectories. 

 

 

 

 

 

GBP/USD

The GBP/USD pair has failed to move beyond the 1.274 support level, with a series of doji candles suggesting a lack of appetite from sellers to drive price action lower. We may therefore expect the current sideways move from the pair to continue in the near-term. Momentum indicators have flattened in bearish territory.  

 

 

 

 

 

USD/CHF

The USD/CHF rally appears to be slowing as smaller-bodied candles represent a stall in bullish moves as the pair hangs in mid-range. A target exists at the 0.936 resistance area. A potential for reversal is indicated by momentum indicators; with RSI testing the 70 overbought zone. 

 

 

 

 

 

USD/CAD

The USD/CAD rally has stalled just below the 1.343 resistance area. There is a potential for reversal given the small-bodied candles and the return of sellers. The longer-term downtrend therefore may remain intact, albeit at a more moderate pace. Momentum indicators have flattened in bullish territory, with RSI falling just shy of the overbought zone.  

 

 

 

 

 

GOLD

Gold sellers have lost steam and as such, the metal has stalled around the 1860 price level. A period of consolidation may take place within the 1810-1904 trading range. Momentum indicators have turned bearish, with RSI testing the 30 support level. 

 

 

 

 

 

OIL

WTI has pulled away from the 41.69 gap-fill line as the commodity is unable to sustain a price recovery to pre-Covid levels. Neither buyers nor sellers are dominating price action, again, until current economic conditions change dramatically, oil will likely flatline. Momentum indicators have flattened in neutral territory.