Will The Sterling Rally Continue?

• 5 Nov 2020

USD/JPY

The USD/JPY pair spiked towards the 105.29 price level yet the pair still remains mid-range as sellers returned to contain price action. Uncertainty prevails, hence the smaller-bodied candlesticks. Currently the long-term downtrend remains intact. Momentum indicators have flattened in bearish territory.

 

 

 

 

 

EUR/USD

The Eurodollar still has plenty of buyers as indicated by the sharp rise in buying pressure in yesterday’s trading. Despite a highly volatile period, the pair has maintained range, therefore we may expect these price levels to represent the range boundaries in the near-term. Momentum indicators are bearish. 

 

 

 

 

 

GBP/USD

The ascending trendline continues to be tested as sellers have returned in recent trading sessions. However, a break has not yet materialised and the ascending trendline continues to feature as a strong support zone. If a bullish rebound does indeed take place we expect the rally to continue. Momentum indicators are neutral.  

 

 

 

 

 

USD/CHF

The USD/CHF pair continues to reject the 0.918 resistance area, despite a series of tests. We therefore may expect the sideways trading to continue. Oscillations will likely remain between the 0.903 and 0.918 price levels. Momentum indicators have upward trajectories. 

 

 

 

 

 

USD/CAD

The USD/CAD pair continues to oscillate around the 1.322 price level, as neither buyers nor sellers have managed to dominate price action. Horizontal trading is therefore likely to continue as the pair has failed to maintain the 1.322- 1.343 range in the past. Momentum indicators have upward trajectories. 

 

 

 

 

 

GOLD

Gold has broken the upper trendline of a descending triangle which may be the first indication of a trend change. Previous tests have generally resulted in a bearish rebound, however, the current break appears to be holding. The next resistance level is the 1924.49 price line.  Momentum indicators have stalled in the neutral/bearish territory. 

 

 

 

 

 

OIL

WTI has stalled mid-range after buyers started to build momentum for a rally. Given the current weakness in bullish sentiment, the rally may not last and therefore WTI may struggle to sustain the $40 per barrel range as a result.  Momentum indicators have stalled in neutral/bearish territory.