WTI Sells-Off As Inventories Build

• 20 Nov 2019

USD/JPY

 

The USD/JPY pair is testing the ascending trendline once again as well as the 108.46 support level. On previous occasions, price action has rebounded from this support area. However, the pair has stalled at this price level as price action remains in the 108.06 sand 109.25 trading range. Momentum indicators have downward trajectories.

 

    

 

 

 

EUR/USD

 

The Eurodollar has also made a recovery breaking back above the ascending trendline as buyers return to test the 1.107 resistance line. A moderate break in the last two trading sessions indicate buyers are under pressure and the next resistance line at the 1.112 price level may be a stretch. Momentum indicators are neutral.  

 

 

 

 
 GBP/USD

 

The GBP/USD pair has broken the ascending trendline in the first indication that the rally is coming to an end. A pullback from a key resistance area at the 1.295 price line further indicates a potential bearish reversal. Momentum indicators remain in bullish territory, however, both are moving away from overbought conditions. 

 

 

 

USD/CHF

 

The USD/CHF pair is testing the 0.989 resistance level as well as the ascending trendline. Given the small bodied candles and tighter oscillations, we may anticipate a breakout for the pair. On each previous occasion that the pair has tested the ascending trendline, a bullish reversal has taken place. Momentum indicators are neutral.  

 

 

 

 

USD/CAD

 

The USD/CAD pair has seen the return of buyers, in emphatic style, with a break of the 1.323 resistance line and now a test of the 1.328 resistance area. The rally appears to be gaining momentum despite a few pullbacks. A key target is the 1.333 resistance level and a break would be significant. Momentum indicators have sharp upward trajectories.

 

 

 

SILVER

 

Silver is following the trajectory of the ascending trendline as small-bodied candles hug the support level. It appears that for the time being, price action will remain within the 16.83 and 17.42 price levels. Momentum indicators are returning from oversold conditions and beginning upward trajectories.

 

 

 

 

GOLD

 

Buyers have returned to the metal, as price action climbs, testing a new resistance area at the 1468.50 price level. Small- bodied candles suggest there is not strong conviction behind the move, however, the commodity has returned to a previous trading range. Momentum indicators are beginning bullish trajectories. 

 

 

 

 

OIL

 

WTI price action has undergone a strong sell-off in the last two trading sessions, resulting in a break of the 55.68 support level. The move may represent a short-term pullback in an otherwise longer term uptrend. A bullish rebound seems likely, yet the 57.96 resistance line remains a sticking point for the pair. Momentum indicators have bearish trajectories.