USOUSD: A Pullback Or A Reversal?

• 10 Jun 2021

USD/JPY

USDJPY pair continues to float higher without real conviction from buyers. US Dollar support has returned yet Yen weakness is also playing a role in the trajectory of price action. Momentum indicators have flattened in bullish territory.

GBP/USD

GBPUSD sellers are becoming more active and price action is now moving away from the 1.418 price level. The ascending trendline line has been a key support level in the rally and has typically facilitated bullish rebounds. Momentum indicators have downward trajectories.

EURUSD

The Eurodollar is stuck to the 1.217 price line despite a rise in selling pressure. The current trading range appears unlikely to be sustained given the lack of conviction from buyers. Momentum indicators have moderate downward trajectories.

USDCAD

USDCAD is beginning to recover from the protracted sell-off which started as the economic recovery began. Buyers have returned at the 1.206 support level, albeit with little conviction. Momentum indicators suggest that bullish conviction is building, with clear upward trajectories.

XAUUSD

XAUUSD has pulled back once again to test the ascending trendline, where typically, bullish rebounds take place. Bearish sentiment has risen in recent trading and may be the first sign of a breakdown in the rally. Momentum indicators have downward trajectories.

USOUSD

The USOUSD rally has begun to slowdown and a pullback appears to be beginning. The commodity has stalled several times before really testing the $70 per barrel mark, which has evolved as a key resistance area. Momentum indicators are undergoing reversals.

NDX100

The NDX100 is edging closer to the 14,044 resistance level which represents a price ceiling. Doji candles in the last two trading sessions indicate that indecision has set in mid-rally. Momentum indicators have flattened in bullish territory.