US Dollar Weakness Persists

• 1 Jun 2021

USD/JPY

The USDJPY is heading back towards the ascending trendline where typically, bullish rebounds have taken place. The air is oscillation towards the apex of an ascending triangle as price action narrows as it moves higher. Momentum indicators remain in bullish territory.

GBP/USD

The GBPUSD pair has finally broken the 1.418 resistance level, yet bullish momentum looks weak currently. A clear, well-established rally since November 2020 seems unlikely to break. However, a pullback may be on the cards.  Momentum indicators are testing overbought conditions.

EURUSD

Eurodollar price action is beginning to climb, once again, whilst hugging the ascending trendline, which remains a key support level for the pair. The next target is the 1.232 price line which represents a recent high. Momentum indicators have stalled in bullish territory. 

USDCAD

USDCAD has flattened at the 1.206 support level as doji candles indicate a lack of conviction from both buyers and sellers. The current trading range has remained intact with a series of downside test since the beginning of May.  Momentum indicators are undergoing bullish reversals.

XAUUSD

XAUUSD has weak support but bulls are currently dominating a price action. The sharp trajectory is pointing towards the 1950 resistance line. The slow build in momentum indicates that the current rally may be long-lived. Momentum indicators suggest that the pair is overbought and a short-term pullback may be on the cards.

HK50

The HK50 index has stalled just below the 29518 resistance area, which also represents the gap-fill line of an exhaustion gap in the previous sell-off. Clearly, significant bullish momentum will be required to overcome this resistance area. Momentum indicators have flattened in bullish territory.