USOUSD Surges As Fundamentals Drive Price Action

• 2 Mar 2022

USD/JPY

USDJPY price action has stalled at the trendline which has been a key support area containing bearish moves since September 2021. Small-bodied candles indicate indecision in the pair, with neither buyers nor sellers having the appetite to drive price action. Momentum indicators are neutral.   

 

 

 

 

GBP/USD

The GBPUSD pair has broken the 1.338 price line, yet the downside move has begun to decelerate. Price action will languish within the 1.320-1.338 consolidation channel. The longer-term trajectory is bearish and there appears no evidence of a material change in the trend in the medium term.  

 

 

 

 

EURUSD

The EURUSD pair continues to test a recent low at the 1.113 support line and a break appears to be forming, as heavy selling activity in yesterday’s trading took the pair back to the support line. The break may not be sustained however, looking at momentum indicators. RSI is fast approaching oversold conditions. 

 

 

 

 

XAUUSD

XAUUSD sellers have returned yet bearish conviction appears only moderate. Given the unfolding geopolitical situation, very little maneuvering is taking place in this safe haven commodity. Momentum indicators have flatlined in bullish territory and are floating along the overbought line.  

 

 

 

 

USOUSD

The USOUSD rockets to over $100 per barrel as supply fears drive demand for energy. The last time oil reached this level was in 2014, with a similar geopolitical landscape. Momentum indicators show that the commodity is strongly overbought.  

 

 

 

 

HK50

The HK50 has plummeted passed the 22,808 support level which has been a key obstacle for sellers on at least two previous occasions. Sellers appear to have the conviction to sustain the break as price action moved lower in yesterday’s trading. The index is oversold. 

 

 

 

 

JP225

The JP225 index has moved towards a recent low as a bearish bias begins to impact price action. The move appears less influenced by recent macroeconomic developments and more a reflection of the longer-term bearish trend. Selling pressure may soon drive a break of the 26,167 support line.