US Dollar Strength Has Major Peers Under Pressure

• 16 Mar 2020

USD/JPY

USD/JPY buyers have made a moderate comeback, however the pair was rejected at the 107.93 resistance line. Buying pressure remains high in today’s session taking the pair beyond the 106.62 resistance level. However, a dragonfly doji indicates that there may be some reversal in price action. Momentum indicators have upward trajectories.   

 

 

 

 

EUR/USD

The Eurodollar sell-off has stalled at the 1.107 support area after a break of the ascending trendline. Selling pressure remains, with an inverted hammer candlestick beginning to form in today’s trading, as perhaps the first indication of a reversal. Momentum indicators have formed downward trajectories.  

 

 

 

GBP/USD

The GBP/USD pair has held at the 1.228 support level after four strongly bearish trading sessions. Selling pressure remains, denoted by the long upper shadow in today’s trading. The pair has now returned to a previous trading range. Momentum indicators have turned bearish and are testing the 30 oversold line.

 

 

 

USD/CHF

The USD/CHF pair has rebounded from the 0.925 support level as buyers have returned taking price action through a series of resistance levels and the descending trendline. Buying pressure remains in today’s trading as the pair begins to test the 0.953 resistance area. Momentum indicators have formed upward trajectories, breaking the 30 oversold line. 

 

 

 

USD/CAD

The USD/CAD rally appears to have come to an end as sellers have returned to dominate price action in recent trading. The next target is the 1.369 support level yet volatility will likely continue. Momentum indicators have downward trajectories with RSI moving back towards the 70 resistance line.   

 

 

 

SILVER

The Silver sell-off continues with price action heading towards a long-term support level at the 14.60 price level. When the metal reached this support level in the past a long-term uptrend ensued. The sell-off may continue if the virus situation continues or even worsens. Momentum indicators have moved further into bearish territory with RSI moving beyond the 30 zone.

 

 

 

GOLD

Gold sellers have dominated price action in five of the last trading sessions, yet the metal has stalled at the 1531.98 support level. The move has resulted in a return to a previous trading range which was broken in mid-December. Momentum indicators support the bearish momentum with downward trajectories.  

 

 

 

OIL

WTI continues to languish around the 30 per barrel mark as the sell-off starts to slowdown. Volatility remains high as there remains a lack of cohesion between the world’s largest oil producers. A recovery in China’s economy will probably be required to see some uplift in oil prices. Momentum indicators remain strongly bearish and RSI has stalled at the 30 oversold line.