OPEC Extension Provides Support To Oil Price Rally

• 8 Jun 2020

USD/JPY

The USD/JPY pair has moved beyond the 109.24 resistance level yet the rally has stalled just after the break. A new trading range may be established if the pair is unable to break the 110.19 price level. Momentum indicators remain in bullish territory, with RSI continuing to test overbought conditions. 

 

 

 

 

EUR/USD

The Eurodollar has pushed beyond the 1.124 resistance line, yet significant selling activity has begun after the break. The pair may struggle to reach the 1.140 price level as sellers begin to dominate price action. Momentum indicators have turned bullish yet RSI is returning towards the overbought ’70’ line.

 

 

 

 

GBP/USD

The GBP/USD pair has finally broken the 1.261 resistance level and is heading towards the 1.280 price level which represents the floor of a previous trading range. Momentum indicators remain in bullish territory and RSI is testing the overbought resistance line at 70. 

 

 

 

USD/CHF

The USD/CHF pair has returned to the 0.959 support level as the pair continues to oscillate around this price level. The support level represents a break of a price floor in the 0.959- 0.976 trading range and the next likely target will be the 0.976 resistance area. Momentum indicators appear to be undergoing momentum reversals. 

 

 

 

USD/CAD

The USD/CAD breakout has gathered significant support, taking price action towards the 1.342 support level as the pair returns to price levels seen before the Covid-19 breakout. If the pair can return to the 1.295-1.333 trading range, a full price recovery will be confirmed. Momentum indicators have also stalled at oversold territory. 

 

 

 

SILVER

Silver has returned to the 17.58 resistance level after a brief break which looked like the metal may take off and reach new highs. The pullback may be a short rest period before another drive higher. Momentum indicators have stalled in bullish territory and RSI suggests there is further upside potential. 

 

 

 

 

GOLD

Gold sellers have been dominant in recent trading which has taken the metal beyond the 1693 support level. Buyers are active in early trading which may see price action continue to hug the 1693 price level. Momentum indicators have bearish trajectories.

 

 

 

 

OIL

WTI has finally broken the 34.90 resistance level, which is significant as it represents a gap fill line from the previous downtrend. Price action is now closing the gap and is reaching the 41.40 price level and a break would give the rally real traction. Momentum indicators remain in bullish territory although RSI suggests oil is overbought.