USOUSD At A Crossroads

• 8 Mar 2022

USD/JPY

USDJPY price action is narrowing towards the apex of a cross between the ascending trendline and the 115.41 resistance line. Typically this pattern of price action occurs before a breakout where both buyers appear to have lost steam and may regroup to drive a change in price action. 

 

 

 

 

GBP/USD

The GBPUSD pair has plummeted further and is now testing the 1.310 price level where buyers have returned in the early Asian trading session. Momentum indicators suggest that a recovery could be underway as RSI begins a bullish momentum reversal. 

 

 

 

 

EURUSD

The EURUSD sell-off appears to have stalled at the 1.085 support line as buying pressure has started to rise in the last few trading sessions. A bullish reversal may now be underway as according to momentum indicators, the pair is extremely oversold.   

 

 

 

 

USDCAD

The USDCAD sell-off has taken the pair toward the upper bound of the current consolidation channel. Currently sellers are dominating price action which indicates that a break is unlikely in the near-term. Momentum indicators also reflect the slowdown in bullish sentiment with flattening trajectories in bullish territory. 

 

 

 

 

XAUUSD

The XAUUSD rally has been contained at the 1998 price line, as sellers return to the metal albeit with moderate conviction. The next target will be the 1970 support line as a reversal begins to build. Momentum indicators continue to bounce along the overbought line suggest bearish conviction is currently insufficient.    

 

 

 

 

USOUSD

The USOUSD has begun to stall at the 119.52 resistance line, as a long-legged doji indicates a real tussle between buyers and sellers. The next move will be significant and today’s trading will determine which side was able to overcome the battle. Momentum indicators suggest the commodity overbought. 

 

 

 

 

HK50

The HK50 is testing a long-term support level as a reflection of how much the index has sold off in recent trading. The 20,957 price line has not been tested in over 1 year as a marker of how bearish the market is with respect to the HK50. Momentum indicators suggest the index is strongly oversold.