WTI Tests Key Support Level

• 22 Jan 2020

USD/JPY

The USD/JPY pair has begun to pull away from the 110.19 resistance line, yet buyers remain active. The next support level is at the 109.61 price level; the question is whether sellers have the conviction to drive price action lower. Momentum indicators are bearish with RSI pulling away from overbought conditions.  

 

     

 

 

EUR/USD

The Eurodollar has once again pulled back to the ascending trendline with a strong bearish move in recent trading. Selling pressure remains despite the test of the support area. Another key support area remains at the 1.107 price level, where price action has previously rebounded. Momentum indicators have downward trajectories. 

 

 

GBP/USD

The GBP/USD pair has been trending in recent trading with neither buyers nor sellers driving price action. The pair seems likely to remain in a tight trading range between the 1.295 and 1.309 price levels, with the 1.295 support area holding strong on previous occasions. Momentum indicators have downward trajectories with MACD testing the zero line.

 

 

 

USD/CHF

The USD/CHF pair is continuing a bullish reversal and is now testing the 0.968 resistance level with price action heading towards the 0.971 resistance level. If price action is able to break the 0.971 resistance level it would represent a change in a longer-term trend. Momentum indicators have bullish trajectories.  

 

 

 

USD/CAD

The USD/CAD pair has failed to move beyond the 1.304 resistance area and is now heading towards the 1.311 resistance line. Without any key developments in oil markets, the pair may remain in the 1.302- 1.311 trading range. Momentum indicators have upward trajectories with RSI moving into the buy channel. 

 

 

 

SILVER

Silver has returned to a previous trading range between the 16.55 and 18.09 price levels. However, price action has now moved to test the 17.73 support level having failed to clear the 18.09 hurdle. The metal may return to a previous, longer-term downtrend. Momentum indicators also have bearish trajectories.  

 

 

 

GOLD

Gold fails to clear the 1552 price area as buyers appear to lack incentive to drive price action higher. A previous high was brought about by geopolitical tensions which have since dissipated. A doji in yesterday’s trading represents indecision and may represent a potential trend change. Momentum indicators are pulling back from strongly overbought conditions. 

 

 

 

OIL

The WTI rally has not moved beyond the 59.18 resistance area, with sellers returning at this price level to take the commodity back towards the ascending trendline and the 57.96 support level. A bullish rebound normally takes place at this ascending trendline as the longer-term uptrend remains intact. Momentum indicators are bearish; with RSI approaching oversold conditions.