XAUUSD Rejects Key Resistance Level

• 16 Feb 2022

USD/JPY

The USDJPY pair is finding moderate support which will bring price action back into the previous price range, between the 115.41-116.15. A recent ceiling which represents the upper bound of the range also represents an obstacle to buyers. Momentum indicators suggest there is further upside potential. 

 

 

 

 

GBP/USD

The GBPUSD price action continues to narrow on its downward trajectory. Price action narrows (as seen by small-bodied candles) typically before a breakout. Given the long-term trajectory, the most likely breakout scenario is bearish. Momentum indicators have flattened in neutral/bearish territory.

 

 

 

 

EURUSD

The EURUSD has bounced back from the descending trendline which may now contain price action as a key support level. Sellers appear active in the early Asian trading session and therefore price action may ‘hug’ the trendline lower. Momentum indicators have downward trajectories.

 

 

 

 

XAUUSD

XAUUSD has pulled back from the 1869 resistance line as once again buyers have failed to drive  break and bearish reversal is now underway. Price action is fast approaching a support level at the 1846 price level. Momentum indicators are also undergoing reversals.  

 

 

 

 

 

WS30

The WS30 is testing a previous support level at the 34,988 price line, as bullish momentum rose sharply in yesterday’s trading. A break would see the pair stabilize in a previous consolidation channel yet bullish momentum may be insufficient to drive the break.  

 

 

 

 

ASX200

ASX200 has begun to pull away from the 7138 support level as buyers have found support. A long legged doji at the support line signified a bullish reversal and we will see how much conviction buyers have to sustain the rally. Momentum indicators have upward trajectories.  

 

 

 

 

JP225

JP225 has begun to climb away from the 26,624 support level yet buyers have so far been unable to overcome the longer-term bearish bias. Previous rallies have been contained by the descending trendline and therefore strong bullish conviction will be required to reverse longer-term sentiment.