XAUUSD Volatility Starts To Rise

• 23 Nov 2021

USD/JPY

The USDJPY pair has surged towards the 114.75 resistance line and given the conviction behind the move, a break of the price ceiling seems imminent. The pair has entered into an ascending triangle pattern where we can anticipate a bullish breakout. Momentum indicators signal that there is further upside.

GBP/USD

The GBPUSD pair has pulled back once again to the 1.337 support level, as sellers have once again returned to thwart any bullish moves. Oscillations continue downward and are narrowing. There appears to be weak appetite from buyers and a longer-term downtrend is well-established.  

EURUSD

The EURUSD continues to push lower as sellers have dominated 7 of the last 9 trading sessions. The question is will the recent move last? Momentum indicators suggest that the pair is oversold and therefore a reversal may be imminent.  

USDCHF

The USDCHF has continued to climb towards the upper bound of the range at the 0.933 price line. The steady rally has plenty of support, as the majority of the most recent trading sessions have been dominated by buying activity. The question is whether the momentum can facilitate a break.  

USDCAD

The USDCAD has made a slow recovery from the 1.228 support line and now has the 1.282 price ceiling in sight. Given the moderate bullish conviction and the fact that momentum indicators are testing overbought conditions, it seems a break is unlikely in the near-term. 

XAUUSD

The XAUUSD continues to oscillate within the symmetrical triangle pattern and a recent test of the upper trendline has inspired the return of sellers. The lower trendline has remained intact with buyers returning in the early Asian trading session. Expect volatility to rise as the metal moves closer to the apex.  

JP225

The JP225 index has begun to consolidate just above the 29,371 support level as a series of doji candles mid-rally suggest that bullish sentiment is waning. The ascending trendline demonstrates that longer-term sentiment is bullish and it remains a key support level, containing price action.