WTI Price Volatility Continues

• 12 Mar 2020

USD/JPY

USD/JPY sellers are still active with price action breaking several support levels including the 104.47 price line. pulled back after the break of the 104.97 as sellers returned to the pair. Volatility will likely continue until macroeconomic factors subside. Momentum indicators remain in bearish territory although a momentum reversal is underway on RSI.   

 

 

 

 

EUR/USD

The Eurodollar briefly broke the 1.128 support area only to rebound back towards the 1.140 resistance line. Buyers are still active and the rally may continue despite the pullback.  Near-term price momentum will predominantly be determined by dollar weakness. Momentum indicators have stalled in bullish territory.  

 

 

 

GBP/USD

The GBP/USD rally was short-lived as the Bank Of England delivered a somewhat unexpected rate cut yesterday. The pair then sank to the 1.280 support level, breaking the descending trendline along the way. This support area has represented a pivot point in the past. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

USD/CHF

The USD/CHF pair has rebounded from the 0.925 support level, yet has stalled just before hitting the 0.942 resistance area. The hanging man candlestick in yesterday’s trading session signals further downside and has so far encouraged profit taking. Momentum indicators have decelerated in bearish territory. 

 

 

 

USD/CAD

The USD/CAD rally has taken price action beyond a recent high at the 1.369 resistance level as further macroeconomic news influences the petrocurrency. Although sellers are still active, the pair continue to push higher as a long-term uptrend remains intact. Momentum indicators have moved into strongly overbought territory.   

 

 

 

SILVER

Buyers have been held at the 17.42 resistance line where price action has pulled back under heavy selling pressure to the 16.55 support line. This support level has been a pivot point before for the metal and price action appears to be held up once again. Momentum indicators have flattened in bearish territory with RSI approaching the 30 zone.

 

 

 

GOLD

Gold sellers are dominating price action currently as the 1660.59 support level struggled to hold. A stall has taken place at the 1637 support area despite rising selling pressure. The pullback may reach the ascending trendline where on previous occasions, a rebound has taken place. Momentum indicators are pulling away from bullish territory.  

 

 

 

OIL

WTI continues to be volatile as worsening macroeconomic news interrupts both supply and demand. Sellers have taken price action back towards the $30 per barrel range. Price action would likely stabilize at the $40 per barrel range. A momentum indicators remain strongly bearish and RSI has extended into oversold territory.