US Dollar Suffers After A Week Of Uncertainty

• 9 Nov 2020

USD/JPY

The USD/JPY pair has tested the 103.40 support level for the last few trading sessions, after a breakout from the descending triangle pattern that took place last week. A longer-term downtrend is well established with sellers currently dominating. Momentum indicators are bearish with RSI testing oversold conditions.

 

 

 

 

 

EUR/USD

The Eurodollar has found support and has the 1.192 resistance line in sight. On previous occasions, this resistance area has resulted in bearish rebounds, therefore buyers’ conviction will be tested. Can the pair break out of this consolidation channel? Momentum indicators have upward trajectories. 

 

 

 

 

 

GBP/USD

The ascending trendline remains a key support level from which the pair has rebounded on several occasions. The last rebound has resulted in a break of the 1.314 resistance level and as such, the pair has re-entered a previous trading range. The extent of buyers’ appetite will become clear in the next few trading sessions. Momentum indicators are bullish.  

 

 

 

 

 

USD/CHF

The USD/CHF sell-off has slowed with buyers returning in early trading. The break of the 0.903 support level is significant however, as it represents a key support level where buyers have previously initiated a bullish rebound. Momentum indicators remain in bearish territory. 

 

 

 

 

 

USD/CAD

The USD/CAD has sold off to test the 1.302 support level. The sell-off appears to be losing pace, however, as highlighted by the small-bodied candles collecting around the support level. Whether the pair can sustain the break of the current range will be determined in the next few trading sessions. Momentum indicators are bearish. 

 

 

 

 

 

GOLD

Gold is beginning to pull away from both the descending trendline and the 1924.49 support level. Bullish momentum appears to be slowing as indicated by the doji candle mid-range. The metal has returned to previous consolidation range which may represent the floor and ceiling of near-term price action. Momentum indicators have upward trajectories. 

 

 

 

 

 

OIL

WTI appears to have settled back within the 36.93 and 41.69 range as oscillations are currently being held between these two price levels. The commodity appears to be struggling to break into the $40 per barrel range, with price action reaching lower highs. Momentum indicators have stalled in neutral/bearish territory.